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Home My WebLink About08/17/2016 AGENDA l i-:---_.--.---...._::_:_ I �' ' , �; �:e �; �! '� .,...__.___............... i.: . _.__.._. ...._.- ;l �` �!- ;� i:.r�_:,_:...__:...__:_i CI'rY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337 G Phone (360)473-5280 AUGUST 17, 2016 CITY COUNCIL MEETING AGENDA 1. BRIEFING: 5:00 to 5:30 P.M. in COUNCIL CONFERENCE ROOM 603 A. Review of Agenda B. General Council Business (As necessary...) 2. CALL TO ORDER: 5:30 P.M. in the FIRST FLOOR CHAMBERS A. Pledge of Allegiance B. Invocation 3. MAYOR'S REPORT 4. POLICE DEPARTMEIVT BRIEFING —Police Chief Steven Strachan 5. PUBLIC RECOGNITION 6. CONSENT AGENDA A. Claims & Check Register B. Minutes of Meeting —August 3, 2016 . C. Minutes of Study Session —August 10, 2016 D. Confirm Appointment of Deanna Jones to the Planning Commission E. Amendment to the Annual Compensation of the Municipal Court Judge F. Interlocal Agreement with Kitsap County for Provision of Juvenile Detention Facilities G. Local Agency Contract with Puget Paving & Construction, Inc. for Austin Drive Pavement Preservation Project H. Ordinance No. 5305 providing for the Issuance and Sale of not to exceed $9M Principal Amount of Water and Sewer Revenue Bonds; and Delegating Authority to the Mayor or Director of Financial Services to approve Final Terms of the Bonds 7. PUBLIC HEARING A. Public Hearing on Surplus and Sale of 1720 Warren Avenue and 914 17�' Street (former CenCom Building) to Olympic College 8. GENERAL BUSINESS A. Resolution No. 3276 to Change the Name of North Summit Avenue to "Carol Arends Parkway" B. Ordinance No. 5306 amending Chapter 15.03.040 of the Bremerton Municipal Code entitled "Service Beyond City Limits" ; 9. COUNCIL MEMBER REPORTS ' 10. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING � Americans with Disabilifies Act(ADA)accommodations provided upon request. Those requiring special accommodations please contact the City Clerk af(360)473-5323 at least 24 hours prior to the Meeting. BREMER'TUN CITY COUNCIL MEETING SPEAKERS LIST PLEASE PRINT YOUR NAME BELOW IF YOU PLAN TO COMMENT SO YOUR NAME CAN BE INCLUDED IN THE RECORD .-___ ��S` � �,c (' REQUESTS FOR INFORIVIATION MUST BE SUBMITTED IN WRITING TO THE CLERK THANK YOU ��f� �� Q��'�� v z� Fror�i: Jerry McDonald Jerry ivlcuonalc#'��c!Lremericn.ti•�a us J •�f� . . . �u�ject: Fwd:CGI-Cost Free Communiry Vdeo Program / � « n�42: July 18,2016 at 8:59 PM �!�'��(�� .p� 1 •�"o: Mr.Jerald McDonald +npirr�an@aai.com Presev�.►`""` -- -- __ _. ��Y . _ . . - - - _. Counc�I VVl e� �e,rry M��ona\d �,�� Bri�-��9 . Begin Forwarded Message: � - _ . _-.,-�...,� -.. ..,_�:_ ._.�`,�,;,�;:��::,�,,:�.,, .._ __ _ . Pa9� ( o� � _�...�__.• �.::� t..:...., rr:':'...,�:;;,�,,,;•. .... .. _.� ;,::-• :�- �,;� �•i i.-,i " _ Good Morning Jerry, My name is Allison Einhouse,and I work with CGI Communications. I have been in contact with both Elaine and Mayor Lent in regards to our cost-free Community Showcase Video Program.They have referred me to you,to move forward with the project!We work in partnership wfth the National League of Cities and U.S.Conference of Mayors and our program provides our partners with a tool to promote tourism,educate and welcome future families and residents,recruit new business and more.Because we know Bremerton is a USCM and NLC member wanted to give you the first look at our 2016 program! Each year we feature select communities across the country through a series of custom videos that advance their marketing and promotional efforts.In Washington,we are already working with Lakewood,Kelso,and Maple Valley just to name a few.From script consultation to editing, our team will work with you every step of the way to ensure BremeRon is highlighted to the best of its ability.The finished video content is viewable on your official website and additional media outlets that encourage community outreach. o Click = - to hear video testimonial of USCM Executive Director Tom Cochran speak of CGI! o Cllck= �• = to see testlmonials of other communities working wfth CGI! As we rapidly approach our busy filming season and because our program is offered at oo-cost,we have a limited production allotment.We would like to set up a brief 15-20 minute teleconference call with you to go over the details of the program and answer any questions you may have.We have some time available next week including Tuesday,July 26th at 10:00 AM or 1:00 PM.We also have time on Wednesday the 27th at 11:00 AM or 1:00 PM.Please let me know if one of these times work for you and I will put you in our calendar.If not I would be happy to coordinate another time with you.If you would like like to reach me directly,my number is 800-398-3029 ext.551. Thank you and I look forward to speaking with you further about this exciting opportunity.Have a great week! Best regards, Allison Einhouse Marketing Associate CGI Communications, Inc. Granite Building,5th Floor 130 East Main SUeet Rochester,NY 14604 Office:l-800-398-3029 ext551 Fax:585-427-0075 . Emaif:aeinhouse@cgicommunications.com www.cgicomm unications.com Like us on Facebook www.facebook.com/cgicommunications Follow us on Twitter ww.twitter.com/cgi comms Connect on Linked In www.linkedin.comkompany/cgi-communications ��9.� � o� �. � CGI � COMMUIVICATIONS,INC. I - • � • • . • • i C6'sl highli��Ots als aspect� �f y��r bus6r�e�s vuith tF��di�tin�� po�er of dideo.You�no�v your � b�asines��tccr th�n �c��,�81G��`�/f. �PCP�4�C�SE�9�6JP 6Y9�S5d�°e CI�C'�P�$I�p'1� ��SSiOPCaII�. � �e�v�rk�A�ith you ��d��err�o�e ti��onte�t�e�� e�e��eat yo�ar�6$ioa�, $P��SI�t�t� 9P1t0�0� er��ing tmml yo��n �6��i�e onGin��^s6th y�u�r�a��g�rmePs �n� slfier�gs-to��! ' ; __ _... _ - WELCOME � � '% �'"-�:; `�`; Your project's producer w[Il greet you,introduce themse{ves and schedule a ame where � � -<;,,•i the details can be discussed. I � ' - - - - _:�;�;, PRODUCTI�N MEETING -:---= ::;=� Your producer wili call at the agreed upon time to explain each step tn detall and ensure , � '�; the final vldeo includes everything that is important to yau.You witl also set a shoot date •—_--=�'` during this meeting,deflning a clear deadline for the proJect . SCRIPTING ' A Qrofessional writer wfll revlew the informatfon gathered during the production meetf�g and create a volceover script that meets all the requirements.You will have flnal say over the scr(pt that is used. � _ : : -.-.:�; STORYBOARD ' `. "' -- Taking the foundaUon created by the writer,the producer wfll create tfie vfsual guide to '�"' � our vEdeo,lisdn all eo [� ro and locations needed as wetl as the utde for filmi ' ,ii:%�:v� Y 8 P P P In• 8 �8 , ----.-- the day of the shoot. ,.... ._.... . . ; ,:-__ VIDEOGRAPHY I � �'`,�.;�; The v9deographer wilf arrive at the scheduled time and dlrect the shoot,fflming all r,_,' � j `-,�,, = necessary scenes tor your video.The footage will then be sent to your editor,which may �....---- --..._... take a week or two. EDITING � The editor wiil follow the storyboard nnd place the best footage into a sequence with the ! recorded volceover scrlpr to create your vldeo for you to review. , i.. .__._. . APPROVAE. i :;:.�;!�'%' Once all changes you may have are made,your producer wil{ask for your final approva{ � �;�:;�' of the video. � i ; :.:-.--.- - 1 i ,-... . .... ._ ADD TO WEBSITE � � ;___:--�; After the video is approved,our web support speciallst will ensure the video Is embedded ; i ;:_,- _:;i ' Into any websices required to dlsplay the video. i �:,.. , i ....... ... .. . .- i , - - . _....... .... . ...._._. � . . . .. .. .......... . . . ..... , j � '1 ��`�-;�j p`:_:\� � J'\ 'I-$�-��-�}� � VIIMMWrC.g;�COfYi(�dt'�/.�Ot'i1 ,;',_: - i � � '' � ;�•: . _ '�.._. -_ �_._ - -- - ... , , . , , . , � . . '----- --- ----- - --- - --- - -- -- ---- - --- ---- --- - --- - ----------J �I'OCYtI11�Ati0tY ��VHEREAS, for more than twenty years, national observance has been sponsored by the Substance Abuse and Mental Health Services Administration (SAMHSA) Center for Substance Abuse and Treatment (CSAT) each September; and WHEREAS, in 2013 approximately 9.4%� of the population bet��een the ages of 12 and 18 have reported illicit drug use, and over 52% report being current drinl:ers of alcohol; and ��VHEREAS, Bremerton is committed to improving citizens' access to treatment programs for alcollol and drug use disorders and approximately one thotisand individuals currently receive publically funded outpatient substance abuse treatment scrvices in our community; and WHEREAS, observance educates the comtnunity on the fact that addiction treatment is as effective as treatment for other chronic medical conditions and can enable those with a substance use disorder to live a healthy and rewarding life; a�1d WHEREAS, observance supports and celebrates all individuals who have chosen to no longer use alcohol and/or other drugs; and WHEREAS, Bremerton is committed to the continuing efforts of education, treatment, tl�e celebrating of recovcry and supporting substance abuse prevention. NOW, THEREFORE, 1, Patty Lent, Mayor of the City ol Bremerton do hereby proclaim September 2016 as Recovery Month in Bremerton. Signed this 17`�' day of August 2016 M.ayor Patty Lent 1StAnnual Sacrifice of Service for the Savi ng of Sou Is � Please 'oin us on Se tember 11 , 2016 J p Ever reen Rota Park - 9 : 00 to 11 : 00 AM g rY Info: martithamaySa�hotmail.com or 360-479-3674 . � � �" � �' D D � �` ,�y_.,� - ��;� '. � � ��x �y��i�� > �� '�. " '�� ;� z� � ,��, .� � � � ' � 1� �.� . � .._: � �.:;� �-� � � � `�-�-� � � � �: � �.,. . : � . ,,; '�`�k � � a . . ' � 1� �-�'` .. :. ,... .a+ � . n.. ' ��,s;s" �� z ,� , � , �.. � .r �.* . ' :-��'� �' '� � �� .. . ' . , � �: �a.r� . , � ' �,:�. • > �" f • , � � _.: ,�: :.� . � -, � �� - :_ � ��w� , ��,;� . . �� f .�� - . . . . ,�, �, . ,�:- � . . : , � .� . _ t ;- � , � - ,;� ,�� .� _ � � � . . .� : , .� .�� 7 . . _ -__- J�a"."'-��ds�` �� •� . �r_. j. �y,'�� . .. . , • . �r .. . � �� ., .` ._ P , � . 1>��. 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' Y � � 1�� ' � � � f � .' k �� . �`_�, . . � � + _ �_ �..,..�.- � . � � �. _ . �, .47�..�- ;'�'.� �,� .. , _ T � � . . .......� .. '�� y:.. _.. � '1�. . _" ._` - r.- � { .... ...._.. - '. .�.�. �.:... �' a . � � '_`.^-- �" . .._._.�.. .......,_..: . ..� T ti � � ..,a:l. � �; /F, . . . ��`£.� . . . _ -... . -.. � � � :� ..w � �r � i� Y! t- M ' 'l.."�=v-'�'CC�: _ �....�..,"�'�.^.�--t,_��; . ,�i:�._ � ._._� r�» �� _ . .� �. .� .. .. r ... - W . . -, _. ..... . . .. . � � � � i � � � ' � �procr�nY�tiotY WHEREAS, on September 11, 200] the peace and security of our nation was shattered by terrorist attacks that killed nearly 3,000 innocent men, women and children at the World Trade Center towers in New York City, at the United States Pentagon, and in the pristinc fields of Somerset County, Pennsylvania; and WHEREAS, as we mark the fifteenth anniversary of the September 11, 2001 attacks on America we hereby adopt this proclamation in tribute to those lost and injured on 9/11 and the many who gave themselves in service to their commuilitics and to this country in the aftermath of the attacks; and WHEREAS, the City of Bremerton acknowledges and supports the 9l 1 Sacrifice of Service and Remembrance event being ileld on September 11, 2016 from 9 AM to 11 A1V1 at the memorial section at Evergreen Rotary Park; anci IVHEREAS, the program being presented began in Washington DC as a tribute to Sacrifice of Service for the Saving of Souls; and WHEREAS, Living Life Leadership and New Life Community Development Agency will present 9/11 Unity & Public Safety Resources at the remembrance event; NOW, THEREFORE, I, Patty Lcnt, Mayor of t11e City of Bremerton, do hereby proclaim September 1 l, 2016 as Sacrifice of Service for the Saving of Souls day in Bremerton and I encourage all of our citizens to attend this worthy event. Signed this 17`�' day of August 2016 Mayor Patty Lent 1 . ��.�i Shac , . < �� . - - . .�` �`�� . �` �,�,�.� � • � . � \� ', ��'� � i _ _ _ _ r �.� � �/y�.y� ..� .y �(�,�, �( I _ lw��,' I �Y� .�'��'� �:' 'lC.,.�j7 .. �i . • • • f { � � I 'r^/ �.t �` � � �*w,�-��_,� --�. .��1 �_J t. __ f �`•�t :�# !� �' �=.i � ` -�r'' _E. ' .�: .:� � � � ��,`"k `'� '�� _ �:. -- � '-i � • - \� � `�< < — �,�t�us', � '„-��_ :�� .-i� �tYs:�-�" � Ttl. ,�r : . ti� � �� °` � , r Yt • �: �. �j " �� ,:::`"r�f . .a ' ^ a , ' r ` '��y -, .. � � � i '``-.�..'� `' - �` � ` '�`" • , � �` I ' r, I�'. I •o i e. � 'r.�' �- �� J ` ` ,j, �+ ��• �'_ ' � ' � '. ;' ''':��' '�` ,�3 �� y� ;? � ; � . ., r � �/ �� .� trY. � � V�Tii' ` `` .'\.) �,�r e � '�1��.�'y`? „? � � a �: � ------__ ' ,�. � � .��• '�1 I � � � G` � �k�j r - �/,� I jF�.� � i�`� : � � �,� ��: � � � ��,. . �� , � �r ' % � �; � �' ,,��,�� I �� :l �.�,�'a � �� . � '/ � ' �� - � r � �-Nr�� :�� /��-��. � �•�� `�• '�� s- _S ._—J �'i1 1 . � . 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J - �.:- ; ,- ` , - �� ;� y;i .v'C�'ift�-�r Cf;PS�€(j�_`c� � --'��' � R�"+%'�� . � _r' .✓r�'� /-� `r�.� � .�C1 � ��Ci1C:J�1�L9L�[rL'j r�:- . � �i i'�� i .� '•yi ` �'`'�,• � ��,'�'�. ,' �- -- - �- �f r J✓ , • � p � %j% ��j� ' � �; '; � � } �� ,,..1 �� __ _ - • • - �V_ -;�f�' �. .-L, � _� " ,. ��' i ' _ -�— _ �- ,�; r'\. , •, .� r ��_ �, �` k �� ,;``:'` �""1�.��' - f ��T, �'�� ,�, �,� �� . : ,< < �� /;. -�-.�,�r,� ._�:;r�,,�. , . . ��-, AS}.� �. �, � 'y:e...,�_. -- l � - - .��.'= - .�, ._.� .�;;F_ ;N'-:"_ •� �: --�... �;�. �:� '��. . �� '�..`� . ,.� =;;y ,�},. �:.,_:.��_ ,'�:�,: - _.�.r�_,.�-. �,'�-� _:4 From: Marine Outfitting <maroutfitting@cbnn.net> Sent: � Friday, August 12, 2016 3:01 PM To: City Council Cc: Terry; Terry Fessner Subject: Max Hale Center Programs work - Salvage Army's approach is doomed to fail Attachments: Max Hale Center vs Salvation Army.docx; Max Hale Center vs Salvation Army.pdf Good Afternoon Please take a moment and read the enclosed document regarding the homeless issue in Bremerton and how the Max Hale Center has handled it verses the Salvage Army's approach. I have provided both the document in both word and pdf formats. Thanks Terry Fessner 360-471-8847 (cell) • 1 This letter pertains to the general issues of the problems the Salvation Army expansion, Kitsap Rescue Mission opening (establishing itself in Bremerton), the potential lease of the Olympus Drive property and the new grant for Kitsap Mental Health / Kitsap Health District / Salvation Army / City of Bremerton. I have struggled with how to present this to you as previously attempts have been heard or read but not addressed or fixed. On many of my downtown Bremerton walks I sometimes stop and talk with people who make up the "fabric" of Bremerton. They are wonderful people who live in the Max Hale Center. These people don't cause problems but were once homeless, poor, addicted — essentially needing a helping hand. You know the kind of people the Salvation Army and Kitsap Rescue Mission are trying to help. So it occurred to me today what the major difference is —the Max Hale Center in the early 1990's built housing (an addition to the old Elks Building) for these people and then moved in the services which provide assistance. HOUSING and then SERVICES. This works and has been working since 1992 (24 years). What the Salvation Army and Kitsap Rescue Mission is attempting to do will never work because they only provide services for a limited time and then set the "clients" out to the streets of Bremerton where they cause issues, litter, pee on building, poop in front of doors, do drugs, scare people etc. — you get my point I hope. The services for the poor, hometess, mentally challenged, drug addicted etc. has to be handled the way the Max Hale Center does it. If an organization does not address the housing issue, everything they do is for not and will cause the problems we in the downtown core are now experiencing. Wow — HOUSING and then SERVICES —the formula for success. I would like to take a personal moment and tell you about some of the people who live in the Max Hale Center and talk to me during my walks. We are just part of the "fabric" of Bremerton — I know they live in the Max Hale Center because that is where they come from — they know me as I am out walking frequently and someone to talk too (I know some of you will find this hard to believe but I am a truly caring person who helps people whenever and however I can). There is Paul. He recently told me his name. He rides his bike and the bus, works at Safeway in the evenings cleaning up the bakery, recently went to New York City to visit family. He is tall with a great smile and always willing to talk. He loves Bremerton and his life because he is part of the Max Hale Center. There is another guy. One Halloween when I was giving out candy I noticed he looked like he needed to talk so I engaged him in conversation. He told me he was really upset because his (adjectives I choose not to repeat) wife kept his daughter home and would not allow her to go out trick or treating with him (I think they are separated or divorced with the wife maintaining custody). We talked for quite some time and i finally told him "take a bunch of candy and give it to your daughter the next time you see her". Fast forward a year and he was back with his daughter!! I saw him and asked him "is this your daughter"? He told me it was his daughter and I gave her lots of candy. It made me feel so good. I see him often throughout the year with his daughter who has grown a lot. Matter of fact I just saw him after lunch and he had a Subway hat on and a black pants and shirt — so I hope he got a job at Subway. Then there is another woman who likes to frequent the bars. We always give each other hugs. Sometimes she smells of liquor other times she does not. She has grand children out of state. When the lawn in front of the building gets out of control, she kindly reminds me it needs mowing or the rose bush needs trimming! See, just ordinary people who were once poor or homeless with probably countless other mental / medical / addiction issues living in our society and now part of the "fabric" of Bremerton. They are not causing issues. They are dealing with life and their "dark side" with the help of the Max Hale Center. They are responsible citizens in our downtown. This is the fix (what the Max Hale Center has done) —what the Salvation Army and Rescue Mission is trying to do will never work — it is like putting a bacteria-infected band aid on a wound and expecting it to heal. It will never heal and you have just made it worse. From: Marine Outfitting <maroutfitting@cbnn.net> Sent: Monday, August 15, 2016 12:35 PM To: City Council Cc: Terry; Terry Fessner Subject: Downtown Security Observations Attachments: Security.docx Good Afternoon I have attached some thoughts I have about downtown security (word format only as I am in Anacortes and my portable doesn't have the full blown adobe installed). Thanks Terry Fessner 360-471-8847 (cell) i I do not understand why the Salvage Army refuses the City of Bremerton's request to provide security (this security is not related to the recent grant discussed by Mayor Lent but the security requested for the types of people they are trying to help). Late at night I see security checking the library and the courthouse. The individual is typically in a car and drives off to check other places for the city. I assume this is security purchased by the City of Bremerton but I am not sure. This individual checks the literacy council door in the basement, the main library doors and then the back door as well as looks down between the parking lot and building (great hiding spot for those of us who know Bremerton). Tim Ryan has security for his facility (600 Pacific) for about 12 hours a day (think from 5 pm to 5 am). I see them often checking the areas behind the dumpsters (favorite place to urinate, sleep, hide etc.) and cleaning up the urine in the parking garage and by the emergency egress doors in the alley. I see all this because I too am the security for my building — 532 5th Street. I work some weird hours and will come back to check on the building. One night I went for a walk to think and was stopped at the Transportation Center by a security person who told me the Transportation Center was closed until 4:30 am. I don't remember the time it was but I do some wonderful thinking around 3 am in the morning. So there must be security down there. Kitsap Credit Union use to have security for its parking garage. Not sure if they still do as they installed a gate at the entrance and keep the glass doors locked on Washington. There was also security inside the building when I did my banking. Again, I am not sure if this still goes on. � The Government Parking Garage has security. The individual normally arrives in a car and drives throughout the parking garage. I don't believe there is a set schedule or at least one I can figure out. So as you can see, lots of individual security going on in downtown Bremerton and I have only referenced what I see. So I ask again, why can't the Salvage Army provide their own security and when is the City of Bremerton going to shut them down as a menace to the town? In closing, it is rather ironic that we all are providing security largely because of what the Salvage Army is doing and they feel they don't have to provide security— really? AGENDA BILL �A CITY OF BREMERTON CITY COUNCIL SUBJECT: Claims & Check Register Study Session Date: COUNCIL MEETING Date: Department: Financial Services Presenter: Shannon Corin Phone: 473-5323 SUMMARY: Approval of the following checks and electronic fund transfers: 1) Check#'s 369634 through 369823 and EFT's 16353 through 16398 in the amount of $1,971,251.55. ; 2) Regular Payroll for the pay.period ending July 31, 2016 in the amount of$707,651.37. ' 3) Regular Payroll for the pay period ending July 31, 2016 in the amount of$2,739.88. ATTACHMENTS: ; FISCAL IMPACTS (Include Budgeted Amount): STUDY SESSION AGENDA: ❑x No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑X Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the consent agenda as presented. � COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 AGENDA BILL � B CITY OF BREMERTON CITY COUNCIL SUBJECT: Minutes of Meeting — Study Session Date: N/A August 3, 2016 COUNCIL MEETING Date: August 17, 2016 Department: City Council Presenter: Council President Phone: (360) 473-5280 SUMMARY: Attached is the summary of the City Council Meeting on August 3,2016. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: ❑X No Presentation ❑ Full Presentation STUDY SESSION ACTION: 0 ConsentAgenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 12/15/15 DIGITAL RECORDING CITY COUNCIL MEETING MINUTES Wednesday, August 3, 2016 The weekly meeting of the City Council of the City of Bremerton was called to order Wednesday, August 3, 2016, at 5:00 PM in Council Conference Room 603 of the NoRnn DicKs GOVERNMENT CENTER, 345 6th Street, Bremerton, Washington, with Council Vice President Dino Davis presiding. Council Members present were Richard Huddy, Greg Wheeler, Jerry McDonald, Leslie Daugs, and Pat Sullivan. Council President Eric Younger was absent. Also present were City Attorney Roger Lubovich; City Clerk Shannon Corin; Legislative Assistant Lori Smith; and Kevin Matthew, Information Services Manager. A CouNci�BRiEFiN� was held to discuss General Council Business at 5:00 PM in the Council Conference Room. At 5:30 PM the meeting moved to the Meeting Chambers. The Pledge of Allegiance was led by Council Member Pat Sullivan followed by the invocation provided by Reverend David Stewart of Mt. Zion Missionary Baptist Church. MAYOR'S REPORT— Mayor Patty Lent... • Fire Chief AI Duke provided a briefing on the 6-unit apartment fire that took place on Wycoff Avenue July 16, and then presented a Mayor's "Above and Beyond" Recognition Award to Bremerton Police Officers J.D. Miller and Kellv Meade (who along with Navy Region Northwest firefighter Nick Pendergrass, who lives across the street), broke the fall of a 77-year-old woman who then only suffered a minor leg injury after dropping about 20 feet from her deck to escape the flames; • Bremerton Central Lions President Lon Howard discussed the Kure, Japan Sister City Exchange Student Program, thanked Program Coordinator Elaine Valencia and host families Andrea & Levi Ernst, Angie 8� Jay Harris, Melinda & David Manning, and Sara 8 Mark Leshley; and introduced 2016 exchange students Ami Koso, Yuko Nishiaochi, and Saika Sasaki; • Manager Audrev Walter; Assistant Manager Rhoda Pollard; and Vice President of Operations Cassie Didericksen (Seattle) from Pacific Fabrics located at 4214 Wheaton Way discussed how they've enjoyed being a part of the community for many years; • West Sound Free Clinic provides free health care every 3�d Wednesday from 3:30 to 6:00 PM at the Salvation Army's Hygiene Center at 832 6th Street; • The Salad Shack will be hosting its Grand Opening on Saturday, August 6 from 11:00 AM to 7:00 PM at 722 Lebo Boulevard; • Farm Funk will host a concert on Saturday, August 20 from 2:00 to 10:00 PM at Minder Farms to benefit the Kitsap Community Food Co-Op; • MotoWest MX event will be on August 6 through 7 off Highway 3 & Bree Drive; • Noxious Weed Workshop hosted by the Kitsap Community and Agricultural Alliance (KCAA) on Sunday, August 21 from 12:00 to 3:00 PM in the Meeting Chambers; • 1 St Annual Aircraft Owners and Pilots Association (AOPA) Fly-in will have several events from August 19 through 20 at the Bremerton National Airport; • Free smoke alarms donated by the Red Cross will be available to Bremerton homeowners by visiting the City's website at www.BremertonWA.qov/smokealarms; • One of the 2016 Best Places for First Responders included the City of Bremerton; and • Was proud that Bremerton's Nathan Adrian is officially on the US Olympics Swim Team. City Council Reg. Mtg. Minutes Wednesday, August 3, 2016 Page 2 of 5 KEDA QUARTERLY REPORT John Powers, Kitsap Economic Development Alliance (KEDA) Executive Director provided a 2"d Quarter Update; shared a video featuring "Aerospace"; and invited Council Members to attend the Kitsap Aerospace 8 Defense Alliance (KADA) 23�a Annual Meeting on Tuesday, August 23 from 3:00 to 6:00 PM in the Avian Center at the Bremerton National Airport. PUBLIC RECOGNITION (Below is only a summary of the full comments provided...) Mike Walton, Community Relations Coordinator with the Kitsap Family YMCA, briefed the community on the events and activities taking place at the Y this summer. Dean Tinqev, Executive Director for Kitsap County Historical Society, announced that a restored 1931 Chevrolet mail truck will be displayed at the Kitsap County Fairgrounds from August 24 to 28 (during the Fair). Robin Henderson with the Manette Neighborhood Coalition and Manette Business Association, announced several events taking place in Manette. John Hanson, President of the Bremerton Historic Ships Association, provided an update on marketing and programs. Bernie Waldbilliq of Susanna's Antiques, was proud to announce a One Year Anniversary sale would be held on August 12 & 13 offering 20% off all items in recognition of their business surviving its first year; and encouraged everyone to shop other businesses on Callow Avenue. Caroline Stein of the Washington State Science & Engineer Fair, discussed how funding received from the Lodging Tax distribution is used. Beckv Tatman with Kitsap Civil Survival, reiterated her request for Bremerton to take the lead in "Banning the Box" to provide an opportunity for those who have served time to at least receive the chance for a job interview. Rav Garrido of Kitsap Immigrant Assistance Center, acknowledged the Bremerton Stake Church of Jesus Christ of Latter Day Saints for donating 100 back packs with school supplies. James Knauer, Bremerton Symphony Fiscal Services Manager, thanked the City for their continued support with funding from the Lodging Tax. CONSENT AGENDA 5A— Claims & Check Register: Check Numbers 369462 through 369633, and EFT-16308 through EFT-16352 in the amount of$1,384,193.74; Regular Payroll for the pay period ending July 15, 2016 in the amount of$751,047.08; Regular Payroll (Correction) for the pay period ending July 15, 2016 in the amount of$204.75; Retiree Payroll for the pay period ending July 31, 2016 in the amount of$52,230.88; Regular Payroll (BPOG Retro) for the pay period January 1 through May 15, 2016 in the amount of$30,592.22; Regular Payroll (BPMA Retro) for the pay period January 1 through May 15, 2016 in the amount � of$3,739.08; and Regular Payroll (BPD Retro)for the pay period January 1 through May 15, 2016 in the amount of$2,404.31 5B— Minutes of Meeting —July 20, 2016 5C — Minutes of Special Meeting —July 27, 2016 5D — Confirm Appointment of Elizabeth Wrenn to Position No. 2 of the Parks & Recreation Commission City Council Reg. Mtg. Minutes Wednesday, August 3, 2016 Page 3 of 5 5E — Confirm Appointments of Robin Henderson, Anna Laurie, and Sharon Shrader to the Citizen's Commission on Council Salaries 5F — Professional Services Agreement with Parametrix for the Evergreen Rotary Park Nearshore Restoration Preliminary Design Project; and Amendment to the 2016 Parks Construction Fund 5G — Approve Submittal of FY-2016 Public Works Construction Loan Applications to the Washington State Department of Commerce, Public Works Board 5H — Lease Agreement with Kitsap Mental Health Services for the Olympus Office Complex Building located at 3027 Olympus Drive, Bremerton There were no questions or comments by the public... 06:34:05 M/S/C/U (Huddy/McDonald) Move to approve the CoNSErvT AGE►v�A as presented. GENERAL BUSINESS 6A—ACCEPTANCE OF THE LODGING TAX ADVISORY COMMITTEE'S (LTAC1 FUNDING RECOMMENDATIONS FOR FY-2017 ALLOCATIONS: On behalf of Council President and Lodging Tax Advisory Committee Chair Eric Younger, Vice President Davis summarized that the City anticipates approximately $605,000 in revenue which will be available for distribution in Fiscal Year 2017. The Lodging Tax Advisory Committee (LTAC) received thirteen (13) requests for funding. Committee members reached consensus and are recommending funding to all of the applicants and to continue the City of Bremerton's commitment to the Kitsap Conference Center. Recommended allocations include $224,200 for the applicants and $155,000 for the Kitsap Conference Center. The City of Bremerton also has a 50 year commitment ending in 2040 with the Admiral Theatre Foundation for$90,000 per year plus an additional $60,000 per year through 2017 for a total allocation of$150,000. It is also recommended that $75,800 (unallocated by the committee) will be carried over as part of the beginning fund balance for Fiscal Year 2017. There were no questions or comments by the public... 06:41:25 Motion was made by Daugs, and seconded by Sullivan... Comments were provided by Daugs... 06:42:10 M/S/C/U (Daugs/Sullivan) Move to accept the Lodging Tax Advisory Committee's recommendations as presented; andto include the allocations in the City of Bremerton's Fiscal Year 2017 Proposed Budget. COUNCIL MEMBER REPORTS Pat Sullivan welcomed volunteers to the "Monthly Lions Park Work Party" on Saturday, August 13 from 10:00 AM to Noon along the shoreline; and enjoyed participating in Josh Farley's Story Walk held at Lions Park last Saturday. City Council Reg. Mtg. Minutes Wednesday, August 3, 2016 Page 4 of 5 Leslie Dauas announced the schedule for the "Summer Food Service Program for Children" ongoing from June 11 through August 11; reminded families that the Bremerton School District will be hosting a Back to School Fair& Fun Run on Tuesday, August 16 and Bremerton Foodline will also be hosting a Back to School event on Thursday, August 18. She reminded everyone to "Save the Date" of Sunday, September 18 for the Annual Raise the Roof Dinner& Auction for the Kitsap Habitat for Humanity; thanked Salvation Army for hosting the Lunch with the Electeds event and for their community service; thanked Police and Fire for their service; encouraged people to get a free smoke alarm; and wished Nathan Adrian good luck at the Olympics. Jerrv McDonald announced Ranger& the Re-Arrangers will play August 4 and Marc Johnson & Joey Niemann will play August 11 at the next two "Music in Manette" concerts at the Whitey Domstad Vista from 6:30 to 8:30 PM; Chance McKinney with Afton Pratter will play August 6 and Boy Blue Band with Tres Hombres led by Tom Pike will play August 13 at the next two "Rock the Dock" concerts on the Bremerton Boardwalk from 5:00 to 7:00 PM; announced that the Saboteur Bakery has now opened at 2110 East 11th Street in Manette; and looked forward to the AOPA Barnstormers Party on Friday, August 19 from 6:30 to 8:30 PM and the Annual Fly- In on Saturday, August 20 from 8:30 AM to 4:00 PM at the Bremerton National Airport. Grep Wheeler looked forward to the Kiwanis Park Farmers Market on Sunday, August 14 from 12:00 to 4:00 PM and hoped to see as many people there as possible so that this market might return again next year; and relayed a few stories to give examples on how the Bremerton Police Officers do extraordinary and caring things for the citizens in our community like checking a homeless woman's injured dog or demonstrating compassion by moving police activity away from a church that was concluding funeral services. Richard Huddv shared a story of how Pacific Fabrics helped him last summer with locating a hard to find button; acknowledged the importance of the message conveyed by the mission of Civil Survival; and then displayed photos to enhance his comments about his attendance at the Salvation Army Lunch with the Electeds (where he also learned about Kitsap Connect); a visit with the Kure Exchange Students and their host families; a visit to Eastside Baby Corner (EBC) West Sound); attendance at the Grand Opening of Blue Sky Hobbies; his participation (along with Council Member Pat Sullivan) in the "Josh Farley Story Walk" at Lions Park; and a ride on the USS Gridley as part of Seattle SeaFair's Parade of Ships as part of Fleet Week. Vice-President Davis announced that Council Members anticipated action following a 15- Minute Executive Session to discuss Potential Litigation under RCW 42.30.110(1)(i). 8A— EXECUTIVE SESSION 07:40:55 (Daugs/Wheeler) M/S/C/U Move to authorize the City Attorney to prepare and file an appeal of the County's Comprehensive Plan 2016 Update to the Growth Management Hearings Board, relating to Land Use Policy 25, and to subsequently file a complaint in Superior Court for a declaratory judgment invalidating the Settlement Agreement executed in May of 2005 with the Kitsap County and the property owners in the South Kitsap UGA. With no further business, Vice-President Davis adjourned the Council Meeting at 7:41 PM. City Council Reg. Mtg. Minutes Wednesday, August 3, 2016 Page 5 of 5 Prepared and Submitted by: C�O� t r� LORI SMITH Legislative Assistant APPROVED by the City Council on the 17th day of August, 2016. Eric Younger, Council President ATTEST: Shannon L. Corin, City Clerk EY:SC:Is:cg AGENDA BILL 6 C CITY OF BREMERTON CITY COUNCIL SUBJECT: Minutes of Study Session— Study Session Date: N/A August 10, 2016 COUNCIL MEETING Date: August 17, 2016 Department: City Council Presenter: Council President Phone: (360) 473-5280 SUMMARY: Attached is the summary of the City Council Study Session on August 10,2016. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: ❑x No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x ConsentAgenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: 'r Move to approve the Consent Agenda as presented. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 12/15/15 DIGITAL RECORDING CITY COUNCIL STUDY SESSION MINUTES Wednesday, August 10, 2016 A Study Session of the City Council of the City of Bremerton was called to order in the Council Conference Room of the NORM DicKs GOVERNMENT CENTER, 345 6th Street, Bremerton, Washington, Wednesday, August 10, 2016, at 5:00 PM, with Council President Eric Younger presiding. Council Members present were Richard Huddy, Dino Davis, Greg Wheeler, Jerry McDonald, Leslie Daugs, and Pat Sullivan. Lori Smith, Legislative Assistant, was present to provide staff support. President Younqer emphasized that the Study Session was open to the public but there would be no opportunities for input or participation; and announced that approved items by Council will be placed on the August 17, 2016 Council Meeting Agenda or as indicated... A. NO PRESENTATION PLANNED — The following items are budgeted items or subjects that have been raised with the appropriate Council Committee Members... 1. Confirm Appointment of Deanna Jones to the Planning Commission Consent Agenda 2. Amendment to the Annual Compensation of the Municipal Court Judge Consent Agenda 3. Services Reimbursement Agreement with the Kitsap Public Health District to Provide Security Services at the Salvation Army Item was pulled by fhe Council while an alternative or other options are studied... 4. Interlocal Agreement with Kitsap County for Provision of Juvenile Detention Facilities Consent Agenda 5. Local Agency Contract to Puget Paving & Construction, Inc. for the Austin Drive Pavement Preservation Project Consent Agenda 6. Proposed Public Hearing on Surplus and Sale of 1720 Warren Avenue and 914 17tn Street (former CenCom Building) to Olympic College Public Hearing(But no action will be necessary by the Council...) B. BRIEFINGS 8� FULL PRESENTATIONS 1. Resolution to Change the Name of North Summit Avenue to "Carol Arends Parkway" General8usiness 2. Lease Agreement with Kitsap Mental Health Services for the Olympus Office Building Complex located at 3027 Olympus Drive General Business 3. Ordinance providing for the Issuance and Sale of not to exceed $7.8M Principal Amount of Water and Sewer Revenue Bonds; and Delegating Authority to the Mayor or Director of Financial Services to approve Final Terms of the Bonds Consent Agenda (The Principal Amount will change...) 4. Ordinance amending Chapter 15.03.040 of the Bremerton Municipal Code entitled "Service Beyond City Limits" General Business City Council Study Session Minutes Wednesday, August 10, 2016 Page 2 of 2 C. GENERAL COUNCIL BUSINESS o Public Works Committee Briefing (8/09/16 Special Meeting)—Chair Greg Wheeler o Public Safety and Parks Committee Briefing (8/10/16 Meeting)—Chair Leslie Daugs o Other General Council Business President Younper referred specifically to Goals 4 and 6 of the 2016 Council Goals, suggesting a future meeting with the Franciscan Health CEO and representatives for a briefing on their proposed intention or business plan; and regarding Economic Development, it was suggested that in the next two weeks, the Council Members submit samples of questions they'd like to see on a survey that would then be sent to local business owners to learn what they think the City can do better to help them. With no further business, President Younper adjourned the Council Study Session at 8:01 PM. Prepared and Submitted by: . � LORI SMITH, Legislative Assistant APPROVED by the City Council on the 17th day of August, 2016. Eric Younger, Council President ATTEST: Shannon L. Corin, City Clerk EY:SC:Is:cg AGENDA BILL 6 D CITY OF BREMERTON CITY COUNCIL SUBJECT: Confirm Appointment of Deanna Study Session Date: August 10, 2016 Jones to the Planning Commission COUNCIL MEETING Date: August 17, 2016 Department: Executive Presenter: Mayor Lent Phone: (360) 473-5266 SUMMARY: The Mayor is seeking confirmation of the appointment Deanna Jones to the Planning Commission to fill the unexpired term of Shaun Dinkhun. The term expires December 31, 2019. ATTACHMENTS: Application to the committee is available in the Mayor's Office. FISCAL IMPACTS (Include Budgeted Amount): None. STUDY SESSION AGENDA: ❑x No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to confirm the appointment of Deanna Jones to the Planning Commission for the term expiring December 31, 2019. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 AGENDA BILL 6 E CITY OF BREMERTON CITY COUNCIL SUBJECT: Amendment to the Annual Study Session Date: August 10, 2016 Compensation of the Municipal Court Judge COUNCIL MEETING Date: August 17, 2016 Department: Municipal Court Presenter: Dawn Nelson Phone: (360) 473-5242 SUMMARY: Pursuant to BMC 2.62.035(a), the Municipal Court Judge's salary is set by City Council action. The City is authorized to receive Trial Court Improvement grant money if the Judge's salary is set at 95% of the District Court Judge's Salary, effective September 1 of each year. That salary is set, by law, by the Washington Citizen's Commission on Salaries for Elected Officials. We are requesting to adjust the salary for the Judge to be effective September 1, 2016 to bring us into compliance with the grant conditions and allow us to continue to receive grant funding. Current salary $147,094.20, proposed new salary $150,036.35 (these amounts include deferred compensation. ATTACHMENTS: Letter from the Administrative Office of the Courts regarding Salary Increase for Judges for 2015 and 2016. FISCAL IMPACTS (Include Budgeted Amount): For the 2016 budget cycle, the increase is $245.17 per month (total $980.68). This amount was already factored into our 2016 budget. STUDY SESSION AGENDA: �x No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to set the annual compensation of the Municipal Court Judge at $150,036.35 (including deferred compensation) effective September 1, 2016. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 � WASHtNGT�N C�C�RTS _ AbMIN15TRATiVE OFFl«Of•TH O 1R Callie T.Dietz State Couri Administrator June 2.2015 T0: District Court Judges District Court Adminis t rs FRONi: Ramsey Radwan N�-- Management Services Division RE: SALARIES TO INCREASE FOR JUDGES 4F THE DISTRICT COURT As you know, state law requires the Washington Citizens' Commission on Salaries for Elected Officials to establish salary schedules for e{ected officials in the Executive, � Legislative, and Judicial Branches of state government. The Commission published the salary schedufes for the two-year period (September 1, 2015- August 31, 2016) following their meeting in 2015. An increase for judges of the appellate, superior and district courts was granted in September 2015, and an ac�itional increase will be implemented on September 1, 2016. The annual salary for full-time judges of the district court will be as follows: Effective from September 1, 2015 untif August 31, 2016: $154,836 Effective from September 1, 2016, until updated: $157,933 The sa(ary for a part-time district court judge shall be the proportion of full-time work for which the position is authorized multiplied by the salary for a fult-time district court judge. If you have questions about the information provided here, please do not hesitate to contact me at ramsev.radwan@courts.wa.qov or(364)357-2406. 0 STATE pF 4�'ASHINGTON t'LUG Qumcc Strcrt SE•P.O.(Sox 4117�•Olympi�,W,1�)85U4-1770 S6U•753-3.iG5•360-9if,-;7�0 fax•wtivvr.cuurts.wa.kov AGENDA BILL F CITY OF BREMERTON CITY COUNGL SUBJECT: Interlocal Agreement Befinreen Study Session Date: August 10, 2016 Kitsap County and City of Bremerton - COUNCIL MEETING Date: August 17, 2016 Provision of Juvenile Detention Facilities Department: Police Presenter: James Burchett Phone: (360) 473-5224 SUMMARY: Kitsap County will provide secure custody/detention for juveniles detained by order of the Bremerton Municipal Court. ATTACHMENTS: ILA Between Kitsap County and City of Bremerton - Provision of Juvenile Detention Facilities FISCAL IMPACTS (Include Budgeted Amount): One Hundred Twenty Dollars ($120.00) per day, per detained youth. STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: u Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: � Move to authorize the Police DepartmenYs expenditure of funds; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 KC-371-15 INTERLOCAL AGREEMENT BETWEEN KITSAP COUNTY AND CITY OF BREMERTON PROVISION OF JUVENILE DETENTION FACILITIES Whereas, Kitsap County has and maintains a juvenile detention facility (`'Facility") at the Kitsap County Youth Services Center pursuant to RCW chapter 13, et. seq; � Whereas, City of Bremerton does not possess sufficient facilities to lodge youth under the age of eighteen 18 who are alleged or adjudicated juvenile offenders pursuant to the laws of the State of Washington; Whereas, it will benefit both Kitsap County and City of Bremerton by limiting costs associated with the detention of City of Bremerton youth and helping Kitsap County to obtain revenue from beds that might otherwise sit empty; Whereas, Kitsap County is a political subdivision of the State of Washington and City of Bremerton is a municipal corporation in the State of Washington; Now, therefore, in accordance with the Interlocal Cooperation Act (RCW chapter 39.34) and pursuant to RCW 13.04.030(])(e)(iii), the County of Kitsap and City of Bremerton enter into this agreement. The parties agree as follows: I. GENERAL CONDITIONS A. Effective Date of A�reement. The effective date of this agreement shall be upon execution of this agreement by the parties. B. Len�th of Term. The term of the Agreement shall be the period from the effective date through December 31, 2017. C. If either party is in breach of this Agreement, the other party may terminate this Agreement immediately by providing written notice to the offending party. The parties accept the risk that termination of this agreement may result in the turning away of potential detainees who would otherwise be accepted at the Facility. D. Contract Administrator. This agreement shall be administered for Kitsap County by Michael S. Merringer, Director of the Kitsap County Juvenile Department, Kitsap County Youth Service Center, 1338 SW Old Clifton Road, Port Orchard, Washington, 98367 and by the Chief of the Bremerton Police Department for City of Bremerton. 1 II. SPECIFIC TERMS AND CONDITIONS: A. Detention. Kitsap County will provide secure custody/detention for juveniles detained pursuant to Washington State law, including but not � limited to RCW 13.04.030, in accordance with the rules, policies, and procedures governing the detention of juveniles. B. This Agreement is limited to detention of juveniles for offenses which are within the jurisdiction of the Bremerton Municipal Court under RCW 13.040.030(1)(e)(iii), and are charged within said court. All youth held within the juvenile facility on offenses otherwise subject to the jurisdiction � of other courts, including but not limited to Kitsap County Superior Court, are not governed by this Agreement. C. Admission (1) When the City of Bremerton is the arresting agency for any offense subject to the jurisdiction of the Bremerton Municipal Court, the . City certifies, by the act of presenting a youth for detention, that the youth is legally detainable. As soon as reasonably practicable, the City shall present all applicable court orders for the detainee, including but not limited to warrants of arrest, bench warrants, charging documents and statements of probable cause. Kitsap County shall bear no responsibility to screen referrals against Kitsap County's specific detention criteria, and legal standards for detention. City of Bremerton shall defend and hold Kitsap County harmless for any legal action resulting from the detention of a youth wrongfully presented by the City of Bremerton for detention and shall pay any judgment assessed against Kitsap County for wrongly detaining a City of Bremerton youth. (2) Prior to presenting a youth for detention, City of Bremerton shall contact the detention center and obtain verification that Kitsap County will accept the youth for detention. Upon presenting, or if on a weekend/holiday on the next business day, an unconvicted youth for detention based upon the terms of the Court's conditions for release, the City of Bremerton shall provide to the detention staff the pertinent court orders setting forth the Court's conditions for release for that youth to the extent any such orders or conditions exist. Upon presenting a youth for detention after sentencing, the City of Bremerton shall provide to the detention staff the judgment and sentence and order of commitment pertaining to that youth. All psycho-social history known to the Court or its staff shall be conveyed in writing to Detention Facility personnel. (3) Any youth who is unconscious, under the influence of alcohol and/or drugs, or gravely disabled as defined in RCW 71.34.020 may not be accepted into detention. At the time of presenting a youth for detention, the City of Bremerton shall provide to the Detention Facility all information known about the youth°s alcohol 2 and drug usage and all information known about a youth's mental health status. (4) Any youth with significant injuries, or who reports that he or she is currently experiencing significant medical problems, may be accepted in detention only when approved fit for detention by a medical doctor or emergency room medical staff. (5) For youths who are detained pre-conviction and adjudged to be suffering from a non-emergent medical condition, the Detention Facility shall make reasonable efforts to notify the City of Bremerton Court Administrator of the condition, so that the City may exercise the option of adjusting conditions of release or making other arrangements to provide the opportunity for the youth to receive medical care without charges accruing to the City. (6) All reasonable efforts will be made to provide detention for City of Bremerton detainees, However, Kitsap County reserves the right to release a detained City of Bremerton youth should overcrowding or conditions outside the Facility's control necessitate such a release. All City of Bremerton detainees shall be released consistent with the detention facilities' current policy and procedures. (7) Should the detention facility discover during the intake process conditions as described in Section C. paragraphs (3) and(4) that would prohibit the facility from taking custody of the City of Bremerton's detainee, the City of Bremerton shall arrange pick up of the youth within a reasonable amount of time and take such actions as deemed necessary by the City of Bremerton. (8) City of Bremerton shall, to the fullest extent practicable, provide all information available to the City regarding its detainees as is routinely required by the Facility. Such information shall include any known accommodation requirements for detainees pursuant to the Americans with Disabilities Act and the information identified on the Facilities' Intake Assessment Record, of which a true copy of the current version is attached hereto as Exhibit A and incorporated herein by this reference. ' (9) If a youth is incarcerated by another law enforcement agency on a warrant issued by the City of Bremerton, Kitsap County shall provide notice to the City upon booking. No charges shall accrue against the City until the City has been provided with notice as set forth in this paragraph. (10) Kitsap County shall incarcerate detainees received from the City of Bremerton until the following occur: (a) expiration of the term of confinement as indicated in a Warrant or Order of Commitment; or (b) upon posting of bail; or (c) receipt of a directive from a law enforcement officer (supervisory rank or higher) or prosecuting attorney of the 3 0 City of Bremerton to release such person held under probable cause without judicial process; or (d) for those held upon probable cause without judicial process upon the passage of two (2) business days; provided, prior to releasing any person pursuant to this subsection, Kitsap County shall attempt to contact the City of Bremerton to ascertain the City of Bremerton's desire with regard to said person; provided that the City of Bremerton shall agree to defend and hold Kitsap County harmless as set forth below for any claim or action resulting from the detention of an individual wrongly detained at the direction of the City of Bremerton. (l 1) It shall be Kitsap County's responsibility to confine the detainee; to supervise, discipline and control said detainee; take such steps as necessary to safeguard the detainee's health and safety; and to administer the detainee's sentence pursuant to the order of the committing court in the State of Washington. (12) Kitsap County will provide education and any other services to detainees in the same manner as it provides services to youth detained by Kitsap County Juvenile Court. III. TRANSPORTATION: A. For youth held by Kitsap County on behalf of the City of Bremerton, City of Bremerton shall assume financial responsibility for costs of � transportation and security necessarily incurred to secure emergent medical evaluations and/or emergency treatment. Emergent medical evaluations and/or treatment are such necessary medical services that are not available from the health care program within the Facility. Nothing herein shall preclude the City of Bremerton from retaking custody of an ill or injured detainee by picking the detainee up for transfer from detention; provided, in situations Kitsap County deems that a detainee requires emergency medical care, Kitsap County shall have the right to arrange for emergency medical services notwithstanding a request from the City of Bremerton to retake custody of the detainee. Kitsap County shall make reasonable efforts to notify the City of Bremerton prior to securing emergent medical evaluations and/or emergency treatment for the detainee. B. Cost for transportation and stand-by time performed by Kitsap County staff shall be the Internal Revenue Service mileage rate in effect at the time of the service performed and the current cost to provide a detention officer(currently$28.00 per officer per hour). C. A detainee serving a sentence or commitment will not be held beyond his/her sentence or commitment expiration date and time. 4 1V. MEDiCAL TR�ATMENT A. KITSAP COUNTY shall provide to City of Bremerton detainees at no additional charge those routine medical services that are provided to other detainees for which the health care provider does not render a separate billing for providing care to a specific individual. B. City of Bremerton shall reimburse Kitsap County for non-cosmetic dental services, prescription drugs, and for medical services for which a health care provider renders a separate billing for providing care to a specific City of Bremerton detainee. In the event that a City of Bremerton detainee is hospitalized, Kitsap County will immediately contact City of Bremerton. The City of Bremerton will determine and notify Kitsap County whether it requires custodial security during the period of hospitalization. If custodial security is required, City of Bremerton will be responsible for the cost of the custodial security provided. C. Kitsap County agrees that the City of Bremerton shall only be responsible for the cost of prescriptions necessary for the duration of the youth's incarceration. By way of example, if a youth is sentenced to 5 days of custody, Kitsap County shall not charge the City for more than 5-days worth of prescription medicine. D. No Waiver of Ri�ht to Seek Reimbursement. The above paragraphs relating to medical costs are intended solely to define the obligations between the parties to this agreement. Nothing contained within the provisions of this agreement shall be construed to waive the rights of either party to seek reimbursement for costs from the department of social and health services, or from the detainee, his or her parent/guardian, or any other responsible third-party. V. FEES: A. The basic fee for detention/custody on behalf of the City for cases charged within the Bremerton Municipal Court shall be one hundred twenty dollars ($120.00) per day, per detained youth. B. If the detainee is also being held by other court(s), the detention/custody fee shall be apportioned on an equal basis between the respective jurisdictions having custody of the detainee. C. A billable custody day shall be defined as any period longer than twelve (12) hours of any calendar day. For youths detained pre-conviction, billable custody days will begin accruing on the date of the youth's first hearing in Bremerton Municipal Court. For youths detained post- conviction, billable custody days will begin accruing on the date of the youth's intake. D. When a detainee is held for 12 hours or less, the charge shall be reduced to sixty dollars ($60.00). 5 VI. BILLINGS: A. Kitsap County shall bill City of Bremerton for detention costs on a monthly basis. B. City of Bremerton shall pay all billings in a timely manner, not to exceed thirty(30) days from the date of billing. VII. INSURANCE/HOLD HARMLESS: Kitsap County and the City of Bremerton shall maintain, throughout the term of this agreement, insurance adequate to protect both parties against claims that may arise as a result of the performance of this agreement. Such insurance shall be placed with responsible insurers, self-insured, or carried through participation in an insurance pool at levels of coverage adequate to protect Kitsap County and the City of Bremerton against loss, and as are ordinarily carried by municipalities engaged in similar operations. Upon request of the other party, Kitsap County and the City of Bremerton shall maintain and provide evidence of liability coverage. The City of Bremerton shall hold harmless, indemnify and defend Kitsap County, its officers, officials, employees and agents, from and against any and all claims, actions, suits, liability, loss, expenses, damages, and judgments of any nature whatsoever, including, but not limited to, reasonable costs and attorneys' fees in defense thereof, for injury, sickness, disability or death to persons or damage to property or business, caused by or arising out of the City of Bremerton's performance of its obligations under this agreement, or the performance of its employees, agents, or subcontractors or anyone for whose acts any of them may be liable. PROVIDED, HOWEVER, that the Ciry of Bremerton's obligation hereunder shall not extend to injury, sickness, death or damage caused by or arising out of the sole negligence of Kitsap County, its officers, officials, employees or agents. PROVIDED FURTHER that in the event of the concurrent negligence of the parties, the City of Bremerton's obligations hereunder shall apply only to the percentage of fault attributable to the City of Bremerton, its employees, agents, or subcontractors. Kitsap County shall hold harmless, indemnify and defend the City of Bremerton, its officers, officials, employees and agents, from and against any and all claims, actions, suits, liability, loss, expenses, damages, and judgments of any nature whatsoever, including, but not limited to, reasonable costs and attorneys' fees in defense thereof, for injury, sickness, disability or death to persons or damage to property or business, caused by or arising out of Kitsap County's performance of its obligations under this agreement, or the performance of its employees, agents, or subcontractors or anyone for whose acts any of them may be liable. PROVIDED, HOWEVER, that Kitsap County's obligation hereunder shall not extend to injury, sickness, death or damage caused by or arising out of the sole negligence of the City of Bremerton, its officers, officials, employees or agents. PROVIDED FURTHER that in the event of the concunent negligence of the 6 parties, Kitsap County's obligations hereunder shall apply only to the percentage of fault attributable to Kitsap County, its employees, agents, or subcontractors. The indemnitor waives its immunity under Title 51 (Industrial Insurance) of the Revised Code of Washington solely for the purposes of this provision and acknowledges that this waiver was mutually negotiated. The terms of Section VII, INSURANCE/HOLD HARMLESS shall survive the termination or expiration of this Agreement. V1II. LEGAL REPRESENTATION OF DETAINEE: City of Bremerton shall be responsible for responding to detainees' request for legal assistance or legal representation. If a City of Bremerton detainee makes a request for legal assistance or representation to a Kitsap County Detention Officer, or elected or appointed official while detained in the detention facility, Kitsap County shall make a reasonable opportunity available for the detainee to contact the detainee's legal counsel (if already represented) or shall notify the City of Bremerton of the detainee's request for counsel at the earliest opportunity. IX. APPLICATION OF DETENTION RULES: Kitsap County Detention Rules and Practices shall be applicable, except in cases of conflict with this agreement. In the event of such conflict, this agreement will control. X. RELEASE FROM DETENTION: A. Any City of Bremerton detainee shall be released, upon demand, to any City of Bremerton law enforcement officer(supervisory rank or higher). B. Any City of Bremerton detainee shall be released upon written direction or verified verbal direction of the City of Bremerton Municipal Court or officer thereof. XI. NON-DETENTION CUSTODY SERVICES: Non-detention custody services shall not be affected by this agreement. Court services, probation services, or the like, shall continue to be the responsibility of City of Bremerton and are not subject to this agreement. XII. FILING: The parties will file this agreement with the Kitsap County Auditor's Office and with the Secretary of the State of Washington pursuant to RCW 39.34.040. XIII. WAIVER OF RIGHTS: 7 No waiver of any right under this Agreement shall be effective unless made in writing by an authorized representative of the party to be bound thereby. Failure to insist upon full performance on any occasion shall not constitute consent to or waiver of any continuation of nonperformance or any later nonperformance; nor does payment of a billing or continued performance, after notice of a deficiency in performance, constitutes acquiescence thereto. XiV. ADMINISTRATION/DISPOSAL OF PROPERTY: This Agreement is executed in accordance with the authority of Chapter 39.34 RCW, the Interlocal Cooperation Act. Pursuant to the provisions of RCW 39.34.030, Kitsap County shall be responsible for administering the confinement of detainees hereunder. No real or personal property will be jointly acquired by the parties under this Agreement. All property owned by each of the parties shall remain its sole property to hold and dispose of in its sole discretion. XV. TERMINATION: This Agreement may be terminated prior to expiration by written notice from either party delivered by regular mail to the contact person at address set forth herein. Termination by said notice shall become effective one hundred twenty (120) days after receipt of such notice. The notice shall set forth the reason the party wishes to terminate the Agreement and the specific plan for accommodating the affected detainees, if any. Should a youth be detained within the Youth Center beyond the termination date, Kitsap County will continue to hold the youth pursuant to the terms of any Court Order, and the provisions of this agreement shall continue to apply for the purposes of that detention alone. XVI. WAIVER OF ARBITRATION RIGHTS: Both parties acknowledge and agree that they are familiar with the provisions of RCW 39.34.180(3), as now in effect, and that of their own free will they hereby expressly waive any and all rights under RCW 39.34.180(3), as now in effect or as hereinafter amended, to arbitrate the level of compensation for incarceration services charged under this Agreement, or any renewal thereof, that either party may posses. The parties further agree that such level of compensation and all other issues related to the purpose of this Agreement will only be as agreed to herein or as otherwise agreed to in a writing executed by the parties. XVII. GOVERNING LAW/VENUE: The parties hereto agree that, except where expressly otherwise provided, the laws and administrative rules and regulations of the State of Washington shall govern in any matter relating to this Agreement and to a detainee's confinement under this Agreement. This Agreement shall be construed and interpreted in accordance 8 with the laws of the State of Washington and in the event of dispute; the venue for any action brought hereunder shall be in Kitsap County Superior Court. XVIII. MISCELLANEOUS: In providing these services to the City of Bremerton, Kitsap County is an independent contractor and neither its officers, agents, nor employees are employees of the City of Bremerton for any purpose including responsibility for any federal or state tax, industrial insurance or Social Security liability. No provision of services under this Agreement shall give rise to any claim of career service or civil service right, which may accrue to an employee of the City of Bremerton under any applicable law, rule, or regulation. XIX. NO THIRD PARTY BENEFICIARY: Nothing contained in this Agreement shall be construed to create a liability or a right of indemnification by any third party. XX. NON-DELEGATION/NON-ASSIGNMENT: Neither party may delegate the performance of any contractual obligation, to a third party, unless mutually agreed in writing. Neither party may assign this agreement without the written consent of the other party. XXI. SEVERABILITY: If any provision of this contract shall be held invalid, the remainder of this contract shall not be affected thereby if such remainder would then continue to serve the purposes and objectives of both parties. In witness thereof, the parties hereto have approved and executed this agreement, this day of 2016. C1TY OF BREMERTON Patty Lent, Mayor ATTEST: 9 Shannon Corin, City Clerk Approved and Executed this day of , 2016. BOARD OF COUNTY COMMISSIONERS KITSAP COUNTY, WASHINGTON ROBERT GELDER, Chair ATTEST: EDWARD E. WOLFE, Commissioner Dana Daniels CHARLOTTE GARRIDO, Commissioner Interim Clerk of the Board 10 AGENDA BILL 6 G CITY OF BREMERTON CITY COUNGL SUBJECT: Local Agency Contract with Study Session Date: August 10, 2016 Puget Paving & Construction, Inc. for Austin COUNCIL MEETING Date: August 17, 2016 Drive Pavement Preservation Project Department: PWBU Presenter: Tom Knuckey Phone: (360) 473-2376 SUMMARY: The City received a $692,000 grant through KRCC for the Austin Drive Pavement Preservation project which will provide an asphalt overlay of Austin Drive from Kitsap Way to Erlands Point Rd and will also overlay Higbee Rd. from Austin Drive to the Navy Hospital Gate. Bids were opened on August 9th, 2016 and 3 bids were received. Puget Paving & Construction, Inc. was the lowest responsive, responsible bidder at $713,038.00 including sales tax. ATTACHMENTS: 1) Site Plan; 2) Contract; 3) Bid Tab FISCAL IMPACTS (Include Budgeted Amount): The project is included in the 2016 budget at $755,000. STUDY SESSION AGENDA: o No Presentation ❑ Full Presentation STUDY SESSION ACTION: o Consent Agenda ❑ General Business o Public Hearing RECOMMENDED MOTION: Move to approve the Local Agency Contract with Puget Paving 8� Construction, Inc. in the amount of $713,038.00 for the Austin Drive Pavement Preservation Project; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 _ - -- , >:, , .... . ,:;.. : .:,� - ��.: - _ , _: � _ ,.._ ,;wx<� .. ;. � , ,... ,. . _ < : . , : _ ,yy . � .. ... -..: :.-:...: -. - . :..,.. . ,=- ,„:, . � •.. ' ��;�� ' .. ...,.. ; � - _ . 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The Contractor shall do a11 work flnd furnish all tools,materials,and equipment for: I in accordance with and as described in the attached plans and specifications,and the stancixrd specifications of the which are by tlus reference incorporated herei.n and made part hereof and,shall perform any chan�es in thc work in accord�vith thc Contract Documcnts. The Contractor shall providc and hcar thc expensc of all equipment, work and labor,of any sort whatsaever that may be ret�uired for the transfer of materials and for conshucting and completing the work provided for in these Contract Documents except those iten2s mentioned thcrcin to bc t'urn�shcd by. II. hcreby promises and agrccs with tlic Cantraclor to cmploy,and docs cmploy thc Contractor to pro��ide the matenals and to do and cause to be done the aba�e descrihed work and to complete aud finish the sa�ne in accord with the attached plans and specifications and t�e terms aud conditiuns hcrcin cuntaincd and hcrcby contracts to pay for thc samc acc�rding to thc attachcd specifications and the schedule of u��it or itemized prices at the teme and in the manner and upon the conditions pro�rided for in this contract. SR DOT Fortn 272•006A EF O7f2049 Austin Drive Pavement Preservation STPUS-6639(001) CD-24 III. Thc Contractor fur himsclf/hersclf,and for his.thcn c�irs,cxccutors,administrators, successors,and assigns,does hereby agree to futl performance of all convenants reyuired of ihe Contractor in the contract. IV. It is further provided that no liabiliry shall attach to the State by reason of entering into this contract,cxcept as providcd hcrein. IN WITNESS W[•IEREOP,the Contractor has executed this instrument,on the day and year first bclow written and has causcd this instrumcnt to bc exccutcd by and in thc name of the day and year first above written. Exe�uted by the Cantractor , �coMreccar) Local Agency: Title: By: Date: , SR p0T FWm 272•O�.A EF 07.r1p11 Austin Dnve Pavement Preservation STPUS-6639(001) CD-24 CITY OF BREMERTON BID TABULATION TID E: Austin Drive PavemeM Preservation Project BYENED Gus Garcia DATE g�g�16 nME 10:00 AM RECORDED Shannon Corin OPENED: OPENED: BY: NAME OF BIDDER BOND TOTAL BID(incl. Sales.Tax) . �u �- /-�a�' � 5 �7/3 D 38'�� '�nE`. (�o�Sf�vvi C�o. ,�� '� D�. � �C.a.�e.��i /n�t.'�r;Q� ,�s � ��8, Q�o 7/ SUMMARY ENGlNEER'S EST/MATE $ 700,000.00 APPARENT LOW BIDDER � ��' I�a ��` $ T/3, D�S'.�y ECOND L BIDDER • l.�k�S�oC� lnd.��r;-��s $ ��/�, 95�- 7/ ,�iRn�owa oE/2.vrC/ �lJr'ts�7,c�'i� �v, � �''sir.. $ 8� 01�,Dv AGENDA BILL � CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. 5305 providing Study Session Date: August 10, 2016 for the issuance and sale of not to exceed COUNCIL MEETING Date: August 17, 2016 $9M principal amount of water and sewer Department: Financial Services revenue bonds and delegating authority to Presenter: Cathy Johnson the Mayor or Director of Financial Services Phone: (360) 473-5296 to approve final terms of the bonds SUMMARY: Annually Financial Services performs an analysis of the Utilities revenue and capital requirements for a six year horizon. The 2016 capital funding plan in this analysis anticipated the issuance of revenue bonds to fund capital improvements to the utility system. The attached ordinance delegates to the Mayor or Director of Financial Services the ability to set the date and rates for the final sale of the bonds. The ordinance set the parameters under which this can occur. By doing this, the City can react to changing market conditions quickly without being tied to a date certain based on Council meeting schedules. ATTACHMENTS: Ordinance No. 5305 FISCAL IMPACTS (Include Budgeted Amount): Issuance of the bonds and associated annual debt service was anticipated in the 2016 adopted budget for the Water, Wastewater and Stormwater funds. STUDY SESSION AGENDA: ❑ No Presentation ❑x Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No. 5305 of the City of Bremerton, Washington, providing for the issuance and sale of not to exceed $9M principal amount of water and sewer revenue bonds; and delegating authority to the Mayor or Director of Financial Services to approve final terms of the bonds. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 CITY OF BREMERTON, WASHINGTON WATER AND SEWER REVENUE BONDS, 2016 ORDINANCE NO. 5305 AN ORDINANCE of the City of Bremerton, Washington, providing for the issuance and sale of not to exceed $9,000,000 principal amount of water and sewer revenue bonds to obtain funds for certain capital improvements to the City's water and sewer system; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. Passed: August 17, 2016 This document prepared bv: Foster Pepper PLLC I111 Third Avenue, Suite 3000 Seattle, Washington 98101 (206) 447-4400 515368103 TABLE OF CONTENTS Pa�e Section1. Definitions............................................................................................................... 1 Section 2. Plan of Improvements .............................................................................................7 Section 3. Authorization of the Bonds.....................................................................................7 Section 4. Description of the Bonds; Appointment of Designated Representative..................7 Section 5. Bond Registrar; Registration and Transfer of Bonds..............................................9 Section 6. Payrnent of Bonds ................................................................................................. 10 Section 7. Redemption Provisions and Open Market Purchase of Bonds.............................. 10 Section 8. Failure to Pay Bonds .............................................................................................11 Section 9. Combined Utility System Fund............................................................................. 12 Section 10. Rate Stabilization Account.................................................................................... 12 Section11. Bond Account........................................................................................................13 Section 12. Adequacy of Revenue ...........................................................................................15 Section 13. General Covenants ................................................................................................ 15 Section 14. Tax Covenants; Designation of Bonds as "Qualified Tax-Exempt Obligations"........................................................................................................... 17 Section 15. Payrnent Agreements.............................................................................................18 Section 16. Future Parity Bonds............................................................................................... 19 Section 17. Refunding or Defeasance of the Bonds.................................................................21 Section 18. Form of the Bonds.................................................................................................22 Section 19. Execution and Authentication of the Bonds..........................................................24 Section 20. Lost or Stolen Bonds.............................................................................................25 Section 21. Sale and Delivery of the Bonds.............................................................................25 Section 22. Official Statement..................................................................................................25 Section 23. Continuing Disclosure...........................................................................................26 Section 24. Application of Bond Proceeds...............................................................................28 Section25. Events of Default...................................................................................................28 Section 26. Bondowners' Trustee ............................................................................................29 Section 27. Suits at Law or in Equity.......................................................................................29 Section 28. Application of Money Collected by Bondowners' Trustee...................................30 Section 29. Duties and Obligation of Bondowners' Trustee....................................................31 Section 30. Suits by Individual Bondowners Restricted..........................................................31 Section 31. Authorization to Officials and Agents...................................................................32 Section 32. Supplements and Amendments.............................................................................32 Section33. Severability............................................................................................................33 Section34. Ratification............................................................................................................33 Section35. Effective Date........................................................................................................33 -i- 51536R10 3 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. 5305 AN ORDINANCE of the City of Bremerton, Washington, providing for the issuance and sale of not to exceed $9,000,000 principal amount of water and sewer revenue bonds to obtain funds for certain capital improvements to the City's water and sewer system; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. WHEREAS, the City of Bremerton, Washington (the "City") owns, operates and maintains a combined waterworks, sewerage and storm drainage system (the"System"); and WHEREAS, it is in the best interest of the City that the City undertake various capital improvements to the System; and WHEREAS, the City now has outstanding its Water and Sewer Revenue and Refunding Bond, 2007 issued pursuant to Ordinance No. 5011 passed by the City Council on June 6, 2007 (the"2007 Bond"); and WHEREAS, the City now has outstanding its Water and Sewer Revenue Bonds, 2014 issued pursuant to Ordinance No. 5255 passed by the City Council on August 20, 2014 (the "2014 Bonds"); and WHEREAS, pursuant to Ordinances Nos. 5011 and 5255, the City authorized the issuance of additional water and sewer bonds payable on a parity with the 2007 Bond and the 2014 Bonds upon certain conditions set forth in such ordinances; and WHEREAS, in order to finance capital improvements to the System, it is hereby found necessary and advisable that the City issue water and sewer revenue bonds (the "Bonds") with a lien on the revenues of the System; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES ORDAIN as follows: Section 1. Definitions. As used in this ordinance the following words shall have the following meanings: "Annual Debt Service" for any fiscal year or calendar year means the sum of: A. the interest due in such year on all outstanding Parity Bonds excluding, however, interest to be paid from the proceeds of Parity Bonds, and any Payment Agreement Payments due in such year, B. the principal of all outstanding Serial Bonds due in such year, and -1- 51?36N10? C. the Sinking Fund Requirement, if any, for such year. If the interest rate on any such bonds is other than a fixed rate, the rate applicable at the time of the computation shall be used. Notwithstanding the foregoing, debt service on Parity Bonds with respect to which a Payment Agreement is in force shall be calculated by the City to reflect the net economic effect on the City intended to be produced by the terms of such Parity Bonds and the terms of such Payment Agreement, in accordance with the requirements applicable to such Payment Agreement. Once the 2007 Bond is no longer outstanding, the City may deduct the direct payment the City is expected to receive in respect of any Future Parity Bonds for which the federal government will provide the City with a direct payment of a portion of the interest from the interest portion of Annual Debt Service for calculating the Reserve Account Requirement. "Assessments" means assessments (including interest and penalties) levied in any utility local improvement district of the City for the acquisition or construction of additions and improvements to and extension of the System, if such assessments are pledged to be paid into the Bond Account, including ULID No. 2002-01. "Authorized Denomination" means $5,000 or any integral multiple thereof within a maturity. • "Average Annual Debt Service" means the amount determined by dividing (A) the sum of all interest and principal to be paid on all Parity Bonds from the date of determination to the last maturity date of such Parity Bonds, by (B) the number of fiscal years or calendar years from and including the fiscal year or calendar year in which the determination is made to the last fiscal year or calendar year in which any of such Parity Bonds will be outstanding. "Beneficial Owner"means, with respect to a Bond, the owner of any beneficial interest in that Bond. "Bond Account" means that special fund of the City to be known as the "Utility Debt Service Account," created for the purpose of paying and securing the principal of and interest on the Bonds, the 2007 Bond, the 2014 Bonds and any Future Parity Bonds. "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of identifying ownership of the Bonds. "Bond Registrar" means the Fiscal Agent, or any successor bond registrar selected by the City. "Bonds" means the bonds issued pursuant to and for the purposes provided in this ordinance. "City" means the City of Bremerton, Washington, a first class city of the State of Washington. -2- SIi3G8103 "Code" means the federal Internal Revenue Code of 1986, as amended, and applicable regulations thereunder. "Council" means the City Council of the City, the general legislative authority of the City, as the same shall be duly and regularly constituted from time to time. "Combined Utility System Fund" means the water system revenue fund, the sewer system revenue fund and the storm drainage system revenue fund (and sub-funds and accounts therein) of the City heretofore created into which fund shall be paid the Gross Revenue of the System. "Director of Financial Services" means the duly yualified, appointed and acting Director of Financial Services of the City or any other officer who succeeds to the duties now delegated to that office. "DTC"means The Depository Trust Company, New York,New York, or its nominee. "Designated Representative" means the officer of the City appointed in Section 4 of this ordinance to serve as the City's designated representative in accordance with RCW 39.46.040(2). "Final Terms"means the terms and conditions for the sale of the Bonds including, but not limited to, the amount, date or dates, denominations, interest rate or rates (or mechanism for detennining interest rate or rates), payment dates, final maturity, redemption rights, price, and other terms or covenants. "Fiscal Agent" means the fiscal agent of the State, as the same may be designated by the State from time to time. "Future Parity Bonds" means all revenue bonds or other revenue obligations of the City issued after the date of the issuance of the Bonds and having a lien upon Gross Revenue for the payment of the principal thereof and interest thereon equal to the lien upon Gross Revenue for the payment of the principal of and interest on the Bonds, the 2007 Bond and the 2014 Bonds. "Government Obligations" has the meaning given to such term in RCW Chapter 39.53, as the same may be amended from time to time. "Gross Revenue" means all earnings and revenue, except Assessments, received by the System from any source, including proceeds from the sale of forest products from System-owned lands, except general ad valorem taxes, grants from the state, federal or local governments, earnings in any refunded bond escrow account or fund, gifts to the System for capital purposes, proceeds from the sale of City or System property, and proceeds of City or System obligations. "Issue Date" means, with respect to the Bonds, the date of initial issuance and delivery of the Bonds to the Underwriter in exchange for the purchase price of the Bonds. "Letter of Representations" means the Blanket Issuer Letter of Representations between the City and the Securities Depository, dated November 19, 1997, as it may be amended from -3- 5�5}FgIU3 time to time, and any successor or substitute letter relating to the operational procedures of the Securities Depository. "MSRB"means the Municipal Securities Rulemaking Board. "Maximum Annual Debt Service" means the maximum amount of Annual Debt Service which shall become due in any future year on the outstanding Bonds, the 2007 Bond, the 2014 Bonds or Future Parity Bonds. "Moody's" means Moody's Investors Services or its comparably recognized business successor. "Net Revenue" means Gross Revenue less the Operating and Maintenance Expenses. "Operating and Maintenance Expenses" means all reasonable expenses incurred by the City in causing the System to be operated and maintained in good repair, working order and condition, including without limitation payments (other than payments out of proceeds of Parity Bonds) of premiums for insurance on the System, and any State-imposed taxes, and also including all payments made to another agency for treatment or disposal of sewerage or acyuisition of water, but excluding depreciation and amortization, and any City-imposed utility taxes or payments in lieu of taxes payable from the Gross Revenue of the System. "Parity Bonds" means the Bonds, the 2007 Bond, the 2014 Bonds and any Future Parity Bonds. "Payment Agreement" means, to the extent permitted from time to time by applicable law, a written agreement entered into by the City (A) in connection with or incidental to the issuance, incuning or carrying of any Parity Bonds; (B) for the purpose of managing or reducing the City's exposure to fluctuations or levels of interest rates, currencies or commodities or for other interest rate, investment, asset or liability management purposes; (C) with a Qualified Counterparty; and (D) which provides, on either a current or forward basis, for an exchange of payrnents determined in accordance with a formula specified therein. "Payment Agreement Payments" means the amounts periodically required to be paid by the City to the Qualified Counterparty pursuant to a Payment Agreement. The term "Payment Agreement Payments" does not include any tertnination payment required to be paid with respect to a Payment Agreement. "Payment Agreement Receipts" means the amounts periodically required to be paid by the Qualified Counterparty to the City pursuant to a Pa}nnent Agreement. "Permitted Investments" means any investments or investment agreements permitted for cities under the laws of the State of Washington as amended from time to time. "Principal and Interest Account" means the account of that name previously created in the Bond Account for the payment of the principal of and interest on the Bonds and any Future Parity Bonds. -4- sis;vxio s "Professional Utility Consultant" means the independent person(s) or firm(s) selected by the City having a favorable reputation for skill and experience with water, wastewater and storm drainage systems of comparable size and character to the System in such areas as are relevant to the purposes for which they are retained. "Project"means the improvements to the System identified in Section 2 hereof. "Qualified Counterparty" means with respect to a Payment Agreement an entity (A) whose senior long term debt obligations, other senior unsecured long term obligations or claims paying ability or whose payment obligations under a Payment Ageement are guaranteed by an entity whose senior long term debt obligations, other senior unsecured long term obligations or claims paying ability are rated (at the time the Payment Agreement is entered into) at least as high as A3 by Moody's and A- by S&P, or the equivalent thereof by any successor thereto, and (B) who is otherwise qualified to act as the other party to a Payment Agreement under any applicable laws of the State. "Qualified Insurance" means any unconditional municipal bond insurance policy or surety bond issued by any insurance company licensed to conduct an insurance business in any state of the United States or by a service corporation acting on behalf of one or more such insurance companies, which insurance company or service corporation, as of the time of issuance of such policy or surety bond, is currently rated in one of the two highest rating categories by Moody's and S&P. "Qualified Letter of Credit" means any irrevocable letter of credit issued by a financial institution for the account of the City on behalf of the owners of any Parity Bonds, which institution maintains an office, agency or branch in the United States and as of the time of issuance of such letter of credit is currently rated in one of the two highest rating categories by Moody's or S&P. "Rate Stabilization Account" means the account of that name authorized to be created within the Combined Utility System Fund pursuant to Section 10 of this ordinance. "Rating Agency" means any nationally recognized rating agency then maintaining a rating on the Bonds at the request of the City. "Rebate Amount" means the amount, if any, determined to be payable with respect to the Bonds to the United States of America in accordance with Section 148(� of the Code. "Record Date" means the Bond Registrar's close of business on the 15th day of the month preceding an interest payment date. With respect to redemption of a Bond prior to its maturity, the Record Date shall mean the Bond Registrar's close of business on the date on which the Bond Registrar sends the notice of redemption in accordance with Section 7. "Registered Owner" means, with respect to a Bond, the person in whose name that Bond is registered on the Bond Register. For so long as the City utilizes the book—entry system for the Bonds under the Letter of Representations, Registered Owner shall mean the Securities Depository. -5- SIi7G8103 ' "Reserve Account" means the account of that name previously created in the Bond Account to secure the payment of principal of and interest on the Parity Bonds. "Reserve Account Requirement" means for the Bonds, an amount to be set by the Designated Representative, which amount may be equal to zero. If the Bonds are to be secured by the Reserve Account, the "Reserve Account Requirement" shall mean with respect to all such outstanding Parity Bonds the lesser of (A) 125% of Average Annual Debt Service or (B)maximum Annual Debt Service; provided, however, that at the time of issuance of any series of Parity Bonds, the Reserve Account Requirement allocable to a series of Parity Bonds secured by the Reserve Account shall not exceed 10% of the initial principal amount of that series of Parity Bonds. "Resource Obligation" means an obligation of the City to pay from Gross Revenue as (A) Operating and Maintenance Expenses for any month in which any Resources were made available to the System during such month (regardless of whether or not the System actually scheduled or received Resources during such month) and (B) at all other times as an indebtedness of the System payable from Gross Revenue on a parity of lien with Parity Bonds, the following costs associated with a resource: (i) costs associated with the System and any Resources hereafter acquired, purchased or constructed by the City and declared by the Council to be a separate system, which such costs shall include but are�not limited to costs of normal operation and maintenance, renewals and replacements, additions and betterments and debt service on the bonds or other obligations of such separate system, but shall exclude costs paid or to be paid from the proceeds of the sale of bonds or other obligations of such separate system, and (ii) costs associated with the purchase of Resources under a contract. "Resources"means facilities or resources of the System. "Rule 15c2-12" means Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934, as amended. "SEC"means the United States Securities and Exchange Commission. "Securities Depository" means DTC, any successor thereto, any substitute securities depository selected by the City, or the nominee of any of the foregoing. Any Securities Depository must be qualified under applicable laws and regulations to provide the services proposed to be provided by it. "S&P"means S&P Global Ratings, or its comparably recognized business successor. "Serial Bonds" means Parity Bonds other than Term Bonds. "Sinking Fund Requirement" means, for any fiscal year or calendar year, the principal amount of Term Bonds required to be purchased, redeemed or paid at maturity in such year as established by the ordinance of the City authorizing the issuance of such Term Bonds. -6- 515;63103 "State"means the State of Washington. "System" means the existing combined water and sewerage system of the City, including the storm drainage system, together with any refuse disposal system or other utility system now or hereafter combined therewith, as the same may be added to, improved and extended for as long as the Bonds and any Future Parity Bonds are outstanding, but shall not include any separate utility system established by the City. "Term Bonds" means any Future Parity Bonds identified as Term Bonds in the ordinance authorizing the issuance thereof, the payment of the principal of which is provided for by a mandatory schedule of deposits of money equal (in the aggregate) to the full principal amount of such Term Bonds, into the Bond Account, and by a mandatory redemption schedule corresponding(as to time and amounts) to sucli mandatory schedule of deposits. "2007 Bond" means the City's "Water and Sewer Revenue and Refunding Bond, 2007" issued under date of June 14, 2007, pursuant to Ordinance No. 5011. "2014 Bonds" means the City's "Water and Sewer Revenue Bonds, 2014" issued under date of September 23, 2014, pursuant to Ordinance No. 5255. "Undertaking" means the undertaking to provide continuing disclosure entered into pursuant to Section 23 of this ordinance. "Underwriter" means D.A. Davidson & Co. who has been selected by the Designated Representative to serve as the underwriter for the Bonds. "ULID No. 2002-01" means Utility Local Improvement District No. 2002-01 established by the City pursuant to Ordinance No. 4837. Section 2. Plan of Improvements. The City hereby specifies and adopts a system or plan of additions to and betterments and extensions of the System, including water and sewer main replacements, distribution system improvements, machinery and eyuipment, meter replacements, fire hydrants, reservoir coatings, road access maintenance, improvements and replacements, land purchase, wastewater treatment plant and pump station improvements, odor control replacements, sewer, pumps and filter replacements and upgrades, storm system improvements (collectively, the "Project"), and any other capital improvements to the System approved by the Council. The Project will be undertaken in accordance with specifications and contracts for acquisition and construction approved by the Council from time to time. It is hereby provided that the Project shall be subject to such changes as to details as may be authorized by the Council either prior to or during the actual course of construction. The estimated cost of the Project is approximately $8,250,000. Section 3. Authorization of the Bonds. The City shall now issue and sell its water and sewer revenue bonds to provide funds to pay costs of the Project, to fund the Reserve Account, if necessary, and to pay costs of issuance of the Bonds. Section 4. Description of the Bonds� Appointment of Designated Representatives. The Mayor and Director of Financial Services are appointed as the City's Desi�mated -7- 51536R10 3 Representatives and either acting alone is authorized and directed to conduct the sale of the Bonds in the manner and upon the terms deemed most advantageous to the City, and to approve the Final Terms of the Bonds, with such additional terms and covenants as she deems advisable, within the following parameters: A. Principal Amount. The Bonds may be issued in one or more series and shall not exceed the aggregate principal amount of$9,000,000. B. Date or Dates. The Bonds shall be dated as of their date of delivery to the Underwriter, which date may not be later than December 31, 2017. C. Denominations, Series Designation, etc. The Bonds must be issued in Authorized Denominations, shall be numbered separately in the manner and shall bear any name and additional designation as deemed necessary or appropriate by the Designated Representative. D. Interest Rate(s). The Bonds shall bear interest at fixed rates per annum (computed on the basis of a 360-day year of twelve 30-day months) from their date or from the most recent interest payment date for which interest has been paid or duly provided for, whichever is later. One or more rates of interest may be fixed for the Bonds, provided that no rate of interest for any Bond may exceed 5.50%, and the true interest cost to the City for the Bonds may not exceed 4.00%. E. Pavment Dates. Interest must be payable at fixed rates semiannually on such dates as are acceptable to the Designated Representative, commencing no later than one year following the Issue Date. Principal payments shall commence on a payment date acceptable , to the Designated Representative and must be payable at maturity or in mandatory redemption installments on such dates as are acceptable to the Designated Representative. F. Final Maturiry. The Bonds shall mature no later than December 1, 2035. G. Redemption Rights. In her discretion, the Designated Representative may approve provisions for the optional and mandatory redemption of Bonds, as follows: (i) Optional Redemption. Any Bond may be designated as being (A) subject to redemption at the option of the City prior to its maturity date or (B) not subject to redemption prior to its maturity date. (ii) Mandatory Redemption. Any Bond may be designated as a Term Bond, subject to mandatory redemption prior to its maturity. H. Price. The purchase price for the Bonds may not be less than 98% or more than 130% of the stated principal amount of the Bonds. I. Other Terms afld Conditions. (i) The Bonds may be sold in accordance with Section 21 of this ordinance. -8- s i s3es io 3 (ii) The Designated Representative may determine whether it is in the City's best interest to provide for bond insurance or other credit enhancement; and may accept such additional terms, conditions and covenants as she may determine are in the best interests of the City, consistent with this ordinance. Section 5. Bond Re�strar; Registration and Transfer of Bonds. A. Registration of Bonds. The Bonds shall be issued only in registered form as to both principal and interest and shall be recorded on the Bond Register. B. Bond Registrar; Duties. The Fiscal Agent is appointed as Bond Registrar for the Bonds. The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration and transfer of the Bonds, which shall be open to inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations coi�tained in the Bond Registrar's Certificate of Authentication on each Bond. The Bond Registrar may become a Registered Owner of a Bond with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Beneficial Owners. C. Bond Register; Transfer and Exchange. The Bonds shall.be issued only in registered form as to both principal and interest and shall be recorded on the Bond Register. The Bond Register shall contain the name and mailing address of the Registered Owner of each Bond and the principal amount and number of each Bond held by each Registered Owner. A Bond surrendered to the Bond Registrar may be exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal amount and of the same interest rate and maturity. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange or transfer shall be without cost to the Registered Owner or transferee. The Bond Registrar shall not be obligated to exchange any Bond or transfer registered ownership during the period between the applicable Record Date and the next upcoming interest payment or redemption date. D. Secu�•ities Depository; Book-Entry Form. The Bonds initially shall be registered in the naine of Cede & Co., as the nominee of DTC, acting as Securities Depository. Bonds so registered shall be held fully immobilized in book-entry fonn by DTC in accordance with the provisions of the Letter of Representations. Registered ownership of any Bond (or portion of a Bond) held in book-entry form may not be transferred except: (i) to any successor Securities Depository; (ii) to any substitute Securities Depository appointed by the City or such substitute Securities Depository's successor; or(iii) to any person if the Bonds are no longer held in book-entry form. Upon the resignation of the Securities Depository from its functions as depository, or upon a termination of the services of the Securities Depository by the City, the City may appoint a substitute Securities Depository. If(i) a Securities Depository resigns from its functions as depository, and no substitute Securities Depository can be obtained, or (ii) the City determines that a Bond is to be in certificated form, such Bond no longer shall be held in -9- � 51536310.i book-entry form and the ownership of such Bond may be transferred to any person as provided in this ordinance. Neither the City nor the Bond Registrar shall have any obligation to participants of any Securities Depository or the persons for whom they act as nominees regarding accuracy of any records maintained by the Securities Depository or its participants. Neither the City nor the Bond Registrar shall be responsible for any notice which is permitted or required to be given to a Registered Owner except such notice as is required to be given by the Bond Registrar to the Securities Depository. Section 6. Payment of Bonds. Principal of and interest on the Bonds shall be payable in lawful money of the United States of America. For as long as a Bond is registered in the name of the Securities Depository, payment of principal of and interest on that Bond shall be made in the manner set forth in the Letter of Representations. If a Bond ceases to be in book-entry form, interest on that Bond shall be paid by electronic transfer on the interest payment date, or by check or draft of the Bond Registrar mailed on the interest payment date to the Registered Owner at the address appearing on the Bond Register as of the Record Date. However, the City is not reyuired to make electronic transfers except pursuant to a request by a Registered Owner in writing received at least 10 days before an interest payment date and at the sole expense of the requesting Registered Owner. Principal of a Bond shall be payable upon presentation and surrender of the Bond by the Registered Owner to the Bond Registrar. The Bonds are not subject to acceleration under any circumstances. Section 7. Redemption Provisions and Open Market Purchase of Bonds. A. Optional Redemption. The Bonds shall be subject to optional redemption acceptable to the Designated Representative, within the parameters set forth in Section 4. Any Bond that is subject to optional redemption may be selected by the City, in its sole discretion, for redemption in whole or in part at any time. B. Mandatory Redemption. Bonds designated as Term Bonds by the Designated Representative, within the parameters set forth in Section 4, if not previously redeemed under any optional redemption provisions, defeased or purchased and surrendered for cancellation under the provisions set forth below, shall be called for redemption at a price equal to the stated principal amount to be redeemed, plus accrued interest. If Term Bonds are � redeemed under the optional redemption provisions, defeased or purchased by the City and cancelled, the principal amount of the Term Bonds so redeemed, defeased or purchased (irrespective of their actual redemption or purchase prices) shall be credited against one or more scheduled mandatory redemption amounts for those Term Bonds. The City shall determine the manner in which the credit is to be allocated and shall notify the Bond Registrar in writing of its allocation prior to the earliest mandatory redemption date for that maturity of Term Bonds for which notice of redemption has not already been given. C. Selection of'Bonds for Redemption; Partial Redemption. All or a portion of the principal amount of any Bond that is subject to optional or mandatory redemption may be redeemed in any Authorized Denomination. If less than all of the outstanding principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall be -10- 5153G310 1 issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option of the Registered Owner) of the same maturity and interest rate in any Authorized Denomination in the aggregate principal amount remaining unredeemed. The principal portion of any Bond registered in the name of the Securities Depository which is to be partially redeemed shall be selected in accordance with the Letter of Representations. If a Bond ceases to be held in book- entry form, the portion to be partially redeemed shall be selected randomly in such manner as the Bond Registrar shall determine. D. Notice of Redemption. While a Bond is registered in the name of the Securities Depository, notice of redemption shall be given as required in accordance with the Letter of Representations. If a Bond ceases to be held in book-entry form, unless waived by the Registered Owner of the Bond to be redeemed, the City shall cause notice of an intended redemption of Bonds to be given by the Bond Registrar not less than 20 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the Registered Owner of each Bond to be redeemed at the address appearing on the Bond Register on the Record Date. The requirements of the preceding sentence shall be satisfied when notice has been mailed as so provided, whether or not it is actually received by an Owner of any Bond. In addition, the redemption notice shall be mailed or sent electronically within the same period to the MSRB (if required under the Undertaking), to each Rating Agency, and to such other persons and with such additional information as the Designated Representative shall determine, but these additional mailings shall not be a condition precedent to the redemption of a Bond. E. Rescission of Optional Redemptiora Notice. In the case of an optional redemption, the notice of redemption may state that the City retains the right to rescind the redemption notice and the optional redemption of those Bonds by giving a notice of rescission to the affected Registered Owners at any time prior to the scheduled optional redemption date. Any notice of optional redemption that is so rescinded shall be of no effect, and a Bond for which a notice of optional redemption has been rescinded shall remain outstanding. F. Effect of Redemption. Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption, unless either the notice of redemption is rescinded as set forth above, or money sufficient to effect such redemption is not on deposit in the Bond Account (or in an escrow account established to carry out a refunding or defeasance of the redeemed Bonds, if any). G. Open Market Purchase. The City reserves the right to purchase any or all of the Bonds in the open market at any time at any price acceptable to the City plus accrued interest to the date of purchase. Section 8. Failure to Pav Bonds. If any Bond is not redeemed when properly presented at its maturity date or date fixed for redemption, the City shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Account and the Bond has been called for payment by giving notice of that call to the Registered Owner. -11- 51 i?6R 10 3 Section 9. Combined Utilitv Svstem Fund. The City pledges to pay all of the Gross Revenues of the System as collected into the Combined Utility System Fund. The Gross Revenue deposited in the Combined Utility System Fund shall be used only for the following purposes and in the following order of priority: � FIRST, to pay the Operating and Maintenance Expenses and costs associated with a Resource Obligation(to the extent payable as Operating and Maintenance Expenses); SECOND, to make all required payments into the Principal and Interest Account for all Parity Bonds and to make Payment Agreement Payments; THIRD, to make all required payments into the Reserve Account for all Parity Bonds and to make all payments required to be made pursuant to a reimbursement agreement in connection with a Qualified Insurance or Qualified Letter of Credit, except that if there is not sufficient money to make all payments under reimbursement agreements, the payments will be made on a pro rata basis; FOURTH, to make all required payments into any revenue bond redemption fund created to pay and secure the payment of the principal of and interest on any revenue bonds or short-term obligations of the City having a lien and charge upon the Gross Revenue of the System subordinate and inferior to the lien thereon for the payment of principal of and interest on any Parity Bonds; and FIFTH, to redeem and retire any water and sewer revenue bonds of the City then outstanding or to purchase any or all of those bonds in the open market, to make necessary additions, betterments, repairs, extensions and replacements of the System or other purposes proper to its maintenance and operation, including the payment of any City-imposed utility taxes or payments in lieu of taxes payable from Gross Revenue of the System, or for any other lawful City purpose. The City may transfer from any funds or accounts of the City legally available therefor, except bond redemption funds, any money therein to meet the required payments to be made into the Bond Account. Section 10. Rate Stabilization Account. A special account of the City to be designated the "Water and Sewer Rate Stabilization AccounY' (the "Rate Stabilization Account") may be created within the Combined Utility System Fund, at the discretion of the Director of Financial Services. The City may from time to time appropriate or budget amounts in the Combined Utility System Fund for deposit in the Rate Stabilization Account and may from time to time withdraw amounts therefrom to prevent or mitigate water and sewer rate increases or for other lawful purposes of the City related to the System. Amounts withdrawn from the Rate Stabilization Account shall increase Gross Revenue for the period for which they are withdrawn, and amounts deposited in the Rate Stabilization Account shall reduce Gross Revenue for the period for which they are deposited. Credits to or from the Rate Stabilization Account that occur within 90 days after the end of a fiscal year may be treated as occurring within such fiscal year. Earnings on the Rate Stabilization Account shall be credited to the Combined Utility System Fund. -12- 51536310 3 Section 11. Bond Account. There has heretofore been created in the office of the Director of Financial Services a fund of the City known as the "Utility Debt Service AccounY' (the "Bond Account"), which fund shall be drawn upon for the sole purpose of paying the principal of, premium if any, and interest on the Parity Bonds. The money in the Bond Account shall be kept separate and apart from all other funds and accounts of the City. A. Debt Service Account. A special account known as the Debt Service Account has been created in the Bond Account for the purpose of paying the principal of, premium, if any, and interest on the Parity Bonds. As long as the Bonds remain outstanding, the City hereby irrevocably obligates and binds itself to set aside and pay from the Combined Utility System Fund into the Debt Service Account, on or before the date due, those amounts necessary, together with Gross Revenue collected and deposited and such other money as is on hand and available therefor in the Debt Service Account, to pay the interest or principal and interest next coming due on the outstanding Parity Bonds. The City covenants and agrees that in the event it issues any Future Parity Bonds that are Term Bonds, it will provide in each ordinance authorizing the issuance of the same for annual payments to be made from the Combined Utility System Fund into the Debt Service Account sufficient together with Gross Revenue collected and deposited and such other money as is on hand and available therefor in such account to satisfy the Sinking Fund Requirement with respect to such Term Bonds. B. Reserve Account. The Reserve Account Requirement for the Bonds may be set at zero, and if so, the Reserve Account will not secure the Bonds. A Reserve Account has been created in the Bond Account for the purpose of securing the payment of the principal of and interest on the 2007 Bond, the 2014 Bonds, the Bonds (if the Designated Representative so determines) and any Future Parity Bonds secured by the Reserve Account. If necessary, the City hereby covenants that it will deposit into the Reserve Account Bond proceeds or other available funds in a sum equal to the Reserve Account Reyuirement for the Bonds. The City further covenants that in the event it issues any Future Parity Bonds it will provide in each ordinance authorizing the issuance of such Future Parity Bonds for the payment into the Reserve Account out of Future Parity Bond proceeds, Gross Revenue or Assessments (or, at the option of the City, out of any other funds on hand and legally available therefor) approximately equal additional annual installments so that by five years from the date of issuance of such Future Parity Bonds there will have been paid into the Reserve Account an amount that, together with money already on deposit therein, will be at least equal to the Reserve Account Requirement. The City may substitute Qualified Insurance or a Qualified Letter of Credit for amounts required to be deposited into the Reserve Account. Such Qualified Letter of Credit or Qualified Insurance shall not be cancellable on less than five years' notice. In the event of any cancellation, the Reserve Account shall be funded in accordance with the provisions of this section providing for payment in the event of a deficiency therein, as if the Parity Bonds that remain outstanding had been issued on the date of such notice of cancellation. The City may create a separate reserve account for a series of Future Parity Bonds, in which case the Reserve Account shall not secure Future Parity Bonds. -13- i153G510 3 The City further covenants and agees that when the required deposits have been made into the Reserve Account, it will at all times maintain therein an amount at least equal to the Reserve Account Requirement, as redetermined in each calendar year with respect to the Parity Bonds secured by such Reserve Account. Whenever there is a sufficient amount in the Bond Account, including all accounts therein, to pay the principal of, premium, if any, and interest on all outstanding Parity Bonds, the money in the Reserve Account may be used to pay the principal of, premium, if any, and interest on the Parity Bonds secured thereby. Money in the Reserve Account may also be withdrawn to redeem and retire, and to pay the premium, if any, and interest due to such date of redemption, on the outstanding Parity Bonds secured by such Reserve Account, as long as the money remaining on deposit in such Reserve Account is at least equal to the Reserve Account Requirement determined with respect to the Parity Bonds then outstanding. In the event the Bonds outstanding are ever refunded, the money set aside in the Reserve Account to secure the payment thereof may be used to retire Bonds or may be transferred to any other reserve account that may be created to secure the payment of any bonds issued to refund the Bonds. In the event there shall be a deficiency in the Debt Service Account to meet maturing installments of either interest on or principal of and interest on the outstanding Parity Bonds payable out of such Account, such deficiency shall be made up from the Reserve Account by the withdrawal of money therefrom and by the sale or redemption of obligations held in the Reserve Account, if necessary, in such amounts as will provide cash in the Reserve Account sufficient to make up any such deficiency, and if a deficiency still exists immediately prior to an interest payment date and after the withdrawal of cash, the City shall then draw from any Qualified Letter of Credit, Qualified Insurance, or other equivalent credit facility in sufficient amount to make up the deficiency. Such draw shall be made at such times and under such conditions as the agreement for such Qualified Letter of Credit or such Qualified Insurance shall provide. If more than one Qualified Letter of Credit or Qualified Insurance is available, draws shall be made ratably thereon to make up the deficiency. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up from money in the Combined Utility System Fund first available after making the payments required to be made under paragraphs "F1RST"through "FOURTH" of Section 9 of this ordinance. C. Lien of Bond Account. The Bonds, together with the interest thereon, shall be payable from Assessments, if any, and Gross Revenue, and such Assessments and Gross Revenue are hereby pledged and set aside out of the Combined Utility System Fund into the Bond Account. The amounts so pledged are hereby declared to be a lien and charge upon Assessments, if any, and Gross Revenue equal to the lien and charge thereon to secure and pay the principal of and interest on any Future Parity Bonds and superior to all other charges of any kind or nature, except the Operating and Maintenance Expenses. D. Investment of Money in Bond Account. All money in the Debt Service Account or Reserve Account may be kept in cash or invested in Permitted Investments maturing not later than the maturity of the Bonds outstanding at the time of such purchase. Interest earned on or profits made from the sale of such investments shall be deposited in and become a part of the Bond Account or the Combined Utility System Fund. -14- 51536810 3 Section 12. AdequacY of Revenue. The Council hereby declares that in fixing the amounts to be paid into the Bond Account it has considered and has due regard for the Operating and Maintenance Expenses and payments associated with Resource Obligations in any month in which any Resources were made available to the System during such month (regardless of whether or not the System actually scheduled or received energy from such Resources during such month) and has not obligated the City to set aside and pay into the Bond Account more money from the Combined Utility System Fund than in its judgrnent will be available over and above such Operating and Maintenance Expenses. Section 13. General Covenants. The City hereby covenants with the owners of the Bonds for as long as the same remain outstanding as follows: A. Rates and Char es. The City will establish, maintain and collect lawful rates and charges for the use of the services and facilities of the System, and shall adjust such rates and charges from time to time so that: (i) Gross Revenue will at all times be sufficient (a) to pay all Operating and Maintenance Expenses and to pay all taxes, assessments or other governmental charges lawfully imposed on the System or the revenue therefrom or payrnents in lieu thereof and all other amounts that the City may now be and hereafter become obligated to pay from Gross Revenue by law or contract, and, together with Assessments actually collected, (b) to pay the principal of and interest on all outstanding Parity Bonds as and when the same become due and payable, to make all payments required to be made into the Bond Account to satisfy the Sinking Fund Requirement, and to make when due all payments required to be made into the Reserve Account; and (ii) the Net Revenue in each calendar year will equal at least 1.30 times Annual Debt Service for such year(after deducting Assessments actually collected for such year). For the purpose of ineeting the requirement of this paragraph there may be added to Net Revenue for any calendar year any amount withdrawn from the Rate Stabilization Account and credited to Gross Revenue as provided in Section 10 of this ordinance. There shall be subtracted from Net Revenue for any calendar year any amounts in such year withdrawn from the Combined Utility System Fund and deposited into the Rate Stabilization Account in such calendar year. The failure to collect Gross Revenue in any fiscal year sufficient to comply with the covenant contained in this subsection shall not constitute an event of default if the City, before the 90th day of the following fiscal year, both (a) employs a Professional Utility Consultant to recommend changes in the City's rates which are estimated to produce Gross Revenue sufficient (once the rates recommended by the Professional Utility Consultant have been imposed by the City) to meet the requirements of this subsection; and (b) imposes rates at least as high as those recommended by such Professional Utility Consultant at the time or times so recommended. B. Maintenance of Svstem. The City will at all times keep and maintain the System in good repair, working order and condition, and will at all times operate the same and the business in connection therewith in an efficient manner and at a reasonable cost. -]5- 5153GSIU 3 C. Sale or Disposition of the System. The City will not sell, mortgage, lease or otherwise dispose of or encumber all or any portion of the System, except as follows: (i) The City may sell, mortgage, lease or otherwise dispose of all or substantially all of the System if, simultaneously with such sale, mortgage, lease or other disposition or encumbrance, provision is made for the payment into the Bond Account of cash or Government Obligations sufficient, together with interest to be earned thereon, to pay the principal of and interest on all then outstanding Parity Bonds. (ii) Except as provided in subsection (iii) below, the City will not sell, mortgage, lease or otherwise dispose of or encumber any part of the useful operating properties of the System in excess of 5% of the value of the net utility plant of the System unless prior to such sale, mortgage, lease or other disposition or encumbrance: (a) there shall have been filed with the Director of Financial Services a certificate of a Professional Utility Consultant stating that such sale, mortgage, lease or other disposition or encumbrance will not impair the ability of the City to comply with the rate covenants set forth in Section 13.A of this ordinance; or (b) provision is made for the payment, redemption or other retirement of a principal amount of outstanding Parity Bonds equal to the greater of the following amounts: (1) an amount that will be in the same proportion to the net principal amount of Parity Bonds then outstanding (defined as the total principal amount of the Parity Bonds less the amount of cash and investments in the Bond Account and accounts therein) that the Net Revenue from the portion of the System sold or disposed of for the 12 preceding months bears to the total Net Revenue for such period; or(2) an amount that will be in the same proportion to the net principal amount of Parity Bonds then outstanding that the book value of the part of the System sold or disposed of bears to the book value of the entire System immediately prior to such sale or disposition. (iii) The City may sell or otherwise dispose of any of the works, plant, properties and facilities of the System or any real or personal property comprising a part of the same with a value less than 5% of the net utility plant of the System or which shall have become unserviceable, inadequate, obsolete or unfit to be used in the operation of the System, or no longer necessary, material to or useful in such operation, without making any deposit into the Bond Account. D. Collection of Assessments. The City shall promptly collect all I Assessments levied in any utility local improvement district now or hereafter created to secure the payment of the principal of and interest on any Parity Bonds and shall pay the same into the Bond Account without allocation of such Assessments to any particular series of Parity Bonds. It is hereby provided further, however, that nothing in this ordinance or in this subsection shall be construed to prohibit the City from issuing revenue bonds having a lien on Gross Revenue junior to the lien on such revenue for the payment of the principal of and interest on Parity Bonds and pledging as security for the payments of such junior lien bonds assessments levied in any utility local improvement district that may have been created to pay part or all the cost of improvements to the System for which such junior lien revenue bonds were specifically issued. -16- 51536810 3 E. Books and Accounts. The City will maintain complete books and records relating to the operation of the System and its financial affairs, and will cause such books and records to be audited annually, and cause to be prepared an annual financial and operating statement. F. Insurance. The City will carry fire and extended coverage insurance on the System as is ordinarily carried on the property of similar public utilities by other municipal corporations engaged in the operation of the same if such insurance can be obtained at a reasonable cost, to the full insurable value thereof, and will also carry adequate public liability insurance and other kinds of insurance as under good practices are ordinarily carried on the properties of similar public utilities by private companies engaged in the operation of the same; provided, however, that the City may if deemed necessary and advisable by the Council, institute or continue a self-insurance program with respect to any or all of the aforementioned risks. The premiums paid for all such insurance shall be regarded and paid as an Operating and Maintenance Expense. G. Delinquencies. The City will promptly collect all service rates and charges and Assessments, determine in a timely manner all delinquencies, and take all necessary legal action to enforce collection of such delinquencies. H. No Free Service. Except as permitted by law, the City will not furnish any service of the System to any customer free of charge. Section 14. Tax Covenants• Designation of Bonds as "Qualified Tax-Exempt Obli 7at� ions." A. Preservation of Tax Exemption .for Interest on the Bonds. The City covenants that it will take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be included in goss income for federal income tax purposes. The City also covenants that it will, to the extent the arbitrage rebate requirements of Section 148 of the Code are applicable to the Bonds, take all actions necessary to comply (or to be treated as having complied) with those requirements in connection with the Bonds, including the calculation and payment of any penalties that the City has elected to pay as an alternative to calculating rebatable arbitrage, and the payment of any other penalties if required under Section 148 of the Code to prevent interest on the Bonds from being included in gross income for federal income tax purposes. B. Post-Issuance Compliance. The Director of Financial Services is authorized and directed to review and update the City's written procedures to facilitate compliance by the City with the covenants in this Section 14 and the applicable requirements of the Code that must be satisfied after the issue date to maintain the tax treatment of the Bonds and the receipt of interest thereon. -17- 5153GF10 3 C. Designation of' Bonds as "Qualified Tax-Exempt Obligations. " The Bonds shall be designated as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code, if the following conditions are met: (i) the Bonds are not "private activity bonds" within the meaning of Section 141 of the Code; (ii) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) which the City and any entity subordinate to the City (including any entity that the City controls, that derives its authority to issue tax-exempt obligations from the City, or that issues tax-exempt obligations on behalf of the City) will issue during the calendar year in which the Bonds are issued wi11 not exceed $10,000,000; and (iii) the amount of tax-exempt obligations, including the Bonds, designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Bonds are issued does not exceed $10,000,000. Section 15. Pa, ni�A�reements. A. General. To the extent and for the purposes permitted from time to time by Chapter 39.96 RCW and other applicable provisions of State law, the City may enter into Payment Agreements with respect to any Parity Bonds, subject to the conditions set forth in this section and in other provisions of this ordinance. B. Manner and Schedule of Payments. Each Payment Agreement shall set forth the manner in which the Payment Agreement Payrnents and the Payment Agreement Receipts shall be calculated and a schedule of payment dates. C. Authorizing Ordinance. Prior to entering into a Payment A�rreement, the Council shall pass an ordinance authorizing such agreement and setting forth such provisions as the Council deems necessary or desirable and are not inconsistent with the provisions of this ordinance. D. Calculation of Payment Agreement Pa�ments and Debt Service on Junior Lien Obligations with Respect to which a Pavment A�reement is in Force. It is the intent of the City, for purposes of the rate coverage requirement set forth in Section 13.A(ii) of this ordinance and the Future Parity Bonds test set forth in Section 16.A(v) of this ordinance, that debt service on Parity Bonds with respect to which a Payment Agreement is in force shall be calculated to reflect the net economic effect on the City intended to be produced by the terms of the Parity Bonds and the terms of the Payment Agreement. In calculating such amounts,'the City shall be guided by the following requirements: (i) The amount of interest deemed to be payable on any Parity Bonds with respect to which a Payment Agreement is in force shall be an amount equal to the amount of interest that would be payable at the rate or rates stated in those Parity Bonds plus Payment Agreement Payments minus Payment A�eement Receipts. -18- sis=esio 3 (ii) For any period during which Payment Agreement Payments are not taken into account in calculating interest on any outstanding Parity Bonds because the Payment Agreement is not then related to any outstanding Parity Bonds, Payment Agreement .. Payments on that Parity Payment Agreement shall be calculated based upon the following assumptions: (a) Citv Obligated to Make Payments Based on Fixed Rate. If the City is obligated to make Payment Agreement Payments based on a fixed rate and the Qualified Counterparty is obligated to make payments based on a variable rate index, payments by the City will be based on the assumed fixed payor rate, and payments by the Qualified Counterparty will be based on a rate equal to the average rate determined by the variable rate index specified by the Payment Agreement during the fiscal quarter preceding the quarter in which the calculation is made; and (b) Ciry Obligated to Make Payments Based on Variable Rate h2dex. If the City is obligated to make Payment Agreement Payments based on a variable rate index and the Qualified Counterparty is obligated to make payments based on a fixed rate, payments by the City will be based on a rate equal to the average rate determined by the variable rate index specified by the Payment Agreement during the fiscal quarter preceding the quarter in which the calculation is made, and the Qualified Counterparty will make payments based on the fixed rate specified by the Payment Agreement. Section 16. Future Parity Bonds. The City hereby further covenants with the owners of the Bonds for as long as the same remain outstanding as follows: A. That it will not issue any bonds with a lien on Gross Revenue superior to the lien on such revenues of the Bonds, the 2007 Bond and the 2014 Bonds. The City may issue Future Parity Bonds and incur Resource Obligations and obligations under reimbursement agreements related to the provision of credit enhancement devices that secure any Parity Bonds for: FIRST, the purpose of acquiring, constructing and installing additions and improvements to and extensions of, acquiring necessary equipment for, or making necessary replacements or repairs and capital improvements to the System, or for any other lawful purpose; or SECOND, the purpose of refunding or purchasing and retiring at or prior to their maturity any outstanding revenue bonds or other obligations payable out of Gross Revenue; and to pledge that payments be made into the Bond Account for the payment of the principal thereof and interest thereon out of the Combined Utility System Fund sufficient to pay the principal of and interest on such Future Parity Bonds and to maintain the reserves required therefor, which such payments may rank equally with the payments out of such Combined Utility System Fund into the Bond Account and the Reserve Account to pay and secure the payment of the principal of and interest on any Parity Bonds then outstanding, upon compliance with the following conditions: -19- 5�53G810 3 � . (i) That at the time of the issuance of such Future Parity Bonds there is no deficiency in the Bond Account. (ii) If there are Assessments levied in any utility local improvement district in which additions and improvements to and extensions of the System will be constructed from the proceeds of such Future Parity Bonds, the ordinance authorizing such Future Parity Bonds shall require that such Assessments be paid into the Bond Account. (iii) If there are Assessments pledged to be paid into a warrant or bond redemption fund for revenue bonds or warrants being refunded by Future Parity Bonds, the ordinance authorizing such Future Parity Bonds shall require such Assessments to be used for the refunding or paid into the Bond Account. (iv) The principal of and interest on the Future Parity Bonds shall be payable out of the Bond Account, and the ordinance authorizing their issuance shall further provide for payments into the Bond Account to satisfy the Sinking Fund Requirement and payments into the Reserve Account to satisfy any Reserve Account Requirement, all as required by Section 11 of this ordinance. (v) Prior to the delivery of any Future Parity Bonds, the City shall have on file in the office of the Director of Financial Services either: (a) a certificate of the Director of Financial Services showing that the Net Revenue determined as hereafter provided for each calendar or fiscal year after the issuance of such Future Parity Bonds will equal at least 1.30 times the Annual Debt Service (after deducting Assessments, allocated to the years in which they would be received if the unpaid balance of each assessment roll were paid in the remaining number of installments with interest on the declining balance at the times and at the rate provided in the ordinance confirming the assessment roll) for each such calendar or fiscal year for all Parity Bonds plus the Future Parity Bonds proposed to be issued. For purposes this certificate, "Net Revenue" shall be the Net Revenue for a period of any 12 consecutive months (which may include amounts withdrawn from the Rate Stabilization Account, as provided in Section 10 of this ordinance) out of the 24 months immediately preceding the date of delivery of such proposed Future Parity Bonds, or (b) a certificate of a Professional Utility Consultant showing that the Net Revenue determined and adjusted as hereafter provided for each calendar or fiscal year after the issuance of such Future Parity Bonds (the "Adjusted Net Revenue") will equal at least 1.30 times the Annual Debt Service (after deducting Assessments, allocated to the years in which they would be received if the unpaid balance of each assessment roll were paid in the remaining number of installments with interest on the declining balance at the times and at the rate provided in the ordinance confirming the assessment roll) for each such calendar or fiscal year for all Parity Bonds plus the Future Parity Bonds proposed to be issued. The Adjusted Net Revenue shall be the Net Revenue for a period of any 12 consecutive months (which may include amounts withdrawn from the Rate Stabilization Account, as provided in Section 10 of this ordinance) out of the 24 months iinmediately preceding the date of delivery of such proposed Future Parity Bonds as adjusted by such Professional Utility -20- 515?6R1(1 3 Consultant to take into consideration changes in Net Revenue estimated to occur under the following conditions for each year after such delivery for so long as any Parity Bonds, including the Future Parity Bonds proposed to be issued, shall be outstanding: (x) the additional Net Revenue that would have been received if any change in rates and charges adopted prior to the date of such certificate and subsequent to the beginning of such 12-month period, had been in force during the full 12-month period; (y) the additional Net Revenue that would have been received if any facility of the System that became fully operational after the beginning of such 12-month period had been so operating for the entire period; and (z) the additional Net Revenue estimated by such Professional Utility Consultant to be received as a result of any additions, betterments and improvements to and extensions of any facilities of the System that are (1) under construction at the time of such certificate or(2) will be constructed from the proceeds of the Future Parity Bonds to be issued. Such Professional Utility Consultant may rely upon, and his or her certificate shall have attached thereto, financial statements of the System certified by the Director of Financial Services showing income and expenses for the period upon which the same is based. B. Notwithstanding the foregoing requirement, if Future Parity Bonds are to be issued for the purpose of refunding at or prior to their maturity any part or all of the then outstanding Parity Bonds and the issuance of such refunding Future Parity Bonds will result in a debt service savings and does not require an increase of more than $5,000 in any fiscal or calendar year for principal of and interest on such refunding Future Parity Bonds over and above the amount required in such year for the principal of and interest on the bonds being refunded thereby, the condition stated in subsection A(v) of this section need not be met. C. Nothing herein contained shall prevent the City from issuing any revenue bonds, warrants or other obligations that are a charge upon the money in the Combined Utility System Fund junior or inferior to the payments required by this ordinance to be made into the Bond Account and the Reserve Account. Section 17. Refunding or Defeasance of the Bonds. The City may issue refunding bonds pursuant to State law or use money available from any other lawful source to carry out a refunding or defeasance plan, which may include (A) paying when due the principal of and interest on the affected Bonds (the "defeased Bonds"); (B) redeeming the defeased Bonds prior to their maturity; and (C)paying the costs of the refunding or defeasance. If the City sets aside in a special trust fund or escrow account irrevocably pledged to that redemption or defeasance (the "trust accounY'), money and/or Government Obligations maturing at a time or times and � bearing interest in amounts sufficient to redeem, refund or defease the defeased Bonds in accordance with their terms, then all right and interest of the Owners of the defeased Bonds in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall cease and become void. Thereafter, the Owners of defeased Bonds shall have the right to receive payment of the principal of and interest on the defeased Bonds solely from the trust account and the defeased Bonds shall be deemed no longer outstanding. In that -21- ;�;,�ri�� event, the City may apply money remaining in any fund or account (other than the trust account) established for the payment or redemption of the defeased Bonds to any lawful purpose. While a Bond is registered in the name of the Securities Depository, notice of any defeasance shall be given in the manner prescribed in the Letter of Representations for notices of redemption of Bonds. If a Bond ceases to be held in book-entry form, then unless specified by the City in a refunding or defeasance plan, selection of Bonds to be defeased, notice of defeasance and replacement of Bond certificates shall be done in accordance with the provisions of this ordinance for the redemption of Bonds prior to their maturity. Section 18. Form of the Bonds. The Bonds shall be in substantially the following form: No. $ UNITED STATES OF AMERICA STATE OF WASHINGTON � CITY OF BREMERTON WATER AND SEWER REVENUE BOND, 2016 INTEREST RATE: % MATURITY DATE: CUSIP NO.: REGISTERED OWNER: CEDE & Co. PRINCIPAL AMOUNT: DOLLARS The City of Bremerton, Washington (the "City"), for value received, hereby promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount indicated above and to pay interest thereon from the , 2016, or the most recent date to which interest has been paid or duly provided for until payment of this Bond at the Interest Rate set forth above, payable on , 20_, and semiannually thereafter on the first days of each December 1 and June 1. The principal of and interest on this Bond are payable solely out of the special fund of the City known as the Utility Debt Service Account (the"Bond Account"). Both principal of and interest on this Bond are payable in lawful money of the United States of America. For so long as the Bonds are held in fully immobilized form, payments of principal and interest shall be made as provided in accordance with the operational arrangements of DTC referred to in the Blanket Issuer Letter of Representations from the City to The Depository Trust Company. In the event that the Bonds are no longer held in fully immobilized form, interest on this Bond shall be paid by check or draft mailed to the Registered Owner at the address appearing on the Bond Register on the 15th day of the month preceding the interest payment date, and principal of this Bond shall be payable upon presentation and surrender of this Bond by the Registered Owner at the office of the fiscal agent of the State of Washington in Seattle, Washington (the "Bond Registrar"). -22- �1536810 3 Principal and interest are payable solely out of the Bond Account, into which fund the City hereby irrevocably binds itself to pay certain fixed amounts out of the Gross Revenue of the System, as the same is defined in Ordinance No. of the City (the "Bond Ordinance"), without regard to any fixed proportion, namely, amounts sufficient to pay the principal of and interest on the outstanding Bonds, the 2007 Bond, the 2014 Bonds and any additional and/or refunding water and sewer revenue bonds issued on a parity of lien with the Bonds, the 2007 Bond and the 2014 Bonds and to accumulate a reserve, all at the times and in the manner set forth in the Bond Ordinance. Reference is made to the Bond Ordinance for definitions of capitalized terms not otherwise defined herein. This Bond is one of a total issue of$ par value of the Bonds, all of like date and tenor, except as to maturity, redemption provisions and interest rates, all payable from the Bond Account and all issued by the City under and pursuant to the laws of the State of Washington and the Bond Ordinance for the purpose of providing funds to pay the cost of certain capital improvements to the System as specified in the Bond Ordinance. The Bonds are subject to redemption prior to their stated maturity as provided in the Bond Ordinance and certificate outlining the Final Terms of the Bonds. The Gross Revenue is hereby pledged to the payment of principal of and interest on the Bonds, and the Bonds constitute a charge or lien upon such revenues prior and superior to any other charges whatsoever, excluding charges for Operation and Maintenance Expenses of the System and payments associated with Resource Obligations, if any, and equal to the lien and charge thereon of the 2007 Bond, the 2014 Bonds and any Future Parity Bonds. The Bonds are not a general obligation of the City. [The City has designated the Bonds as qualified tax-exempt obligations for purposes of Section 265(b) of the Internal Revenue Code of 1986.] The City hereby covenants and agrees with the owners of the Bonds to carry out fully all covenants and meet all obligations of the City as set forth herein and in the Bond Ordinance, and reference is hereby made to the Bond Ordinance for a complete statement of such covenants. This Bond shall not become valid or obligatory for any purpose until the certificate of authentication set forth hereon has been signed by the Bond Registrar. This Bond is interchangeable for Bonds of any authorized denomination of an equal aggregate principal amount, and of the same interest rate and maturity. This Bond is transferable only upon the registry books of the Bond Registrar by surrender of this certificate to the Bond Registrar, duly assigned and executed as indicated below. Such exchange or transfer shall be without cost to the owner or transferee. The City may deem the person in whose name this Bond is registered to be the absolute owner thereof for the purpose of receiving payrnent of the principal of and interest on such Bond and for any and all other purposes whatsoever. The Bond Registrar shall not be obligated to transfer or exchange this Bond during the fifteen days preceding any interest payment date or the date on which notice of redemption of such Bond is to be given nor after such notice has been given. -23- 51?3681U 3 It is hereby certified and declared that the Bonds are issued pursuant to and in strict compliance with the Constitution and laws of the State of Washington and the ordinances of the City and that all acts, conditions and things required to be done precedent to and in the issuance of this Bond have happened, have been done and have been performed as required by law. IN WITNESS WHEREOF, the City has caused this Bond to be signed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, and its corporate seal to be impressed or a facsimile thereof imprinted hereon this day of , 2016. CITY OF BREMERTON, WASHINGTON By /s/ Mayor ATTEST: /s/ City Clerk CERTIFICATE OF AUTHENTICATION Date of Authentication: This is one of the City of Bremerton, Washington, Water and Sewer Revenue Bonds, 2016, dated , 2016, described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENT Bond Registrar By: I Authorized Officer Section 19. Execution and Authentication of the Bonds. The Bonds shall be signed on behalf of the City by the manual or facsimile signature of the Mayor and attested by the manual or facsimile signature of the City Clerk and shall have the seal of the City impressed or a facsimile thereof imprinted thereon. Only such Bonds as shall bear thereon a Certificate of Authentication in the form hereinbefore recited, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. -24- 51±3G810 3 In case either of the officers who shall have executed the Bonds shall cease to be an officer or officers of the City before the Bonds so signed shall have been authenticated or delivered by the Bond Registrar, or issued by the City, such Bonds may nevertheless be authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be as binding upon the City as though those who signed the same had continued to be such officers of the City. Any Bond may also be signed and attested on behalf of the City by such persons as at the actual date of execution of such Bond shall be the proper officers of the City although at the original date of such Bond any such person shall not have been such officer of the City. Section 20. Lost or Stolen Bonds. In case any Bonds shall be lost, stolen or destroyed, the Bond Registrar may deliver a new bond or bonds of like amount, date, maturity, interest rate, tenor, and effect to the Registered Owner or nominee thereof upon the owner paying the expenses and charges of the City in connection therewith and upon filing with the Bond Registrar evidence satisfactory to said Bond Registrar that such bond or bonds were actually lost, stolen or destroyed and or ownership thereof, and upon furnishing the City with indemnity satisfactory to both. Section 21. Sale and Delivery of the Bonds. A. Manner of Sale of Bonds; Delivery of� Bonds. The Designated Representative is authorized to sell the Bonds by negotiated sale to the Underwriter based on her assessment of market conditions, in consultation with appropriate City officials and staff and advisors, and within the parameters set forth in Section 4. In detern�ining the Final Terms, the Designated Representative shall take into account those factors that, in her judgment, may be expected to result in the lowest true interest cost on the Bonds to their maturity, including, but not limited to current interest rates for obligations comparable to the Bonds. B. P�•eparation, Execution and Delivery of the Bonds. The Bonds will be prepared at City expense and will be delivered to the Underwriter, with the approving legal opinion of nationally recognized bond counsel regarding the Bonds. Section 22. Official Statement. A. Preliminary Official Statemen.t. The Designated Representative shall review the form of each preliminary official statement prepared in connection with the sale of the Bonds to the public. For the sole purpose of the Underwriter's compliance with paragraph (b)(1) of Rule 15c2-12, the Designated Representative is authorized to "deem final" that preliminary official statement as of its date, except for the omission of information permitted to be omitted by Rule 15c2-12. The City approves the distribution to potential purchasers of the Bonds of a preliminary official statement that has been "deemed final" in accordance with this paragraph. B. Approval of Final Ofrcial Statemenz. The City approves the preparation of a final official statement for the Bonds to be sold to the public in the form of the preliminary official statement, with such modifications and amendments as the Designated Representative deems necessary or desirable, and further authorizes the Designated Representative to execute and deliver such final official statement to the Underwriter. The City authorizes and approves the distribution by the Underwriter of that final official statement to purchasers and potential purchasers of the Bonds. -25- 51536�IU 3 Section 23. Continuing Disclosure. To meet the requirements of paragaph (b)(5) of Rule 15c2-12, as applicable to a participating underwriter for the above-referenced Bonds (the "Bonds"), the City makes the following written Undertaking for the benefit of holders of the Bonds: A. Undertaking to Provide Annual Firzancial Information and Notice of Listed Events. The City undertakes to provide or cause to be provided, either directly or through a designated agent, to the MSRB, in an electronic format as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB: (i) Annual financial information and operating data of the type included in the final official statement for the Bonds and described in subsection (b) of this section ("annual financial information"); � (ii) Timely notice (not in excess of 10 business days after the occurrence of the event) of the occurrence of any of the following events with respect to the Bonds: (a) principal and interest payment delinquencies; (b) non-payment related defaults, if material; (c) unscheduled draws on debt service reserves reflecting financial difficulties; (d)unscheduled draws on credit enhancements reflecting financial difficulties; (e) substitution of credit or liquidity providers, or their failure to perform; (fl adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notice of Proposed Issue (IRS Form 5701 —TEB) or other material notices or determinations with respect to the tax status of the Bonds; (g) modifications to rights of holders of the Bonds, if material; (h)bond calls (other than scheduled mandatory redemptions of Term Bonds), if material, and tender offers; (i) defeasances; (j) release, substitution, or sale of property securing repayment of the Bonds, if material; (k) rating changes; (1)bankruptcy, insolvency, receivership or similar � event of the City, as such "Bankruptcy Events" are defined in Rule 15c2-12; (m) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (n) appointment of a successor or additional trustee or the change of name of a trustee, if material. (iii) Timely notice of a failure by the City to provide required annual financial information on or before the date specified in subsection (B) of this section. B. Type of'An�aual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide in subsection (A) of this section: (i) Shall consist of (a) annual financial statements showing ending fund equity for the System prepared in accordance with generally accepted accounting principles applicable to government entities (and modified as may be required by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute); (b) the principal amount of outstanding Parity Bonds; and (c) debt service coverage for the Parity Bonds; � -26- SIi3GR10:! (ii) Shall be provided not later than the last day of the ninth month after the end of each fiscal year of the City(currently, a fiscal year ending December 3 l), as such fiscal year may be changed as required or permitted by State law, commencing with the City's fiscal year ending December 31, 2016; and (iii) May be provided in a single or multiple documents, and may be incorporated by specific reference to documents available to the public on the Internet website of the MSRB or filed with the SEC. If not submitted as part of the annual financial information described in paragaph B(i) above, the City will provide or cause to be provided to the MSRB audited financial statements, when and if available. C. Amendment of Undertakin�. The Undertaking is subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, Rating Agency or the MSRB, under the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided. D. Beneficiaries. The Undertaking evidenced by this section shall inure to the benefit of the City and the Beneficial Owner of a Bond, and shall not inure to the benefit of or create any rights in any other person. E. Termination of Undertakin�. The City's obligations under this Undertaking shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under this Undertaking shall terminate if those provisions of Rule 15c2-12 which require the City to comply with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of nationally recognized bond counsel delivered to the City, and the City provides timely notice of such termination to the MSRB. F. Remedv for Failure to Complv with Undertakin�. As soon as practicable after the City learns of any failure to comply with the Undertaking, the City will proceed with due diligence to cause such noncoinpliance to be corrected. No failure by the City or other obligated person to comply with the Undertaking shall constitute an Event of Default (as defined in Section 25 of this ordinance) in respect of the Bonds. The sole remedy of a Beneficial Owner of a Bond shall be to take action to compel the City or other obligated person to comply with the Undertaking, including seeking an order of specific performance from an appropriate court. G. Designation of Official Responsible to Administer Undertaking. The Designated Representative or her desigiee is authorized to take such further actions as may be necessary, appropriate or convenient to carry out this Undertaking in accordance with Rule 15c2- 12, including,without limitation,the following actions: -27- 5153G310} (i) Preparing and filing the annual financial information undertaken to be provided; (ii) Determining whether any event specified in subsection (A) has occurred, assessing its materiality, where necessary, with respect to the Bonds, and preparing and disseminating any required notice of its occurrence; (iii) Determining whether any person other than the City is an "obligated person" within the meaning of Rule ]Sc2-12 with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice of listed events for that person in accordance with Rule 15c2-12; (iv) Selecting, engaging and compensating designated agents and consultants, including but not limited to financial advisors and legal counsel, to assist and advise the City in canying out the Undertaking; and (v) Effecting any necessary amendment of the Undertaking. Section 24. Application of Bond Proceeds. The proceeds of the Bonds shall be applied as follows: A. If determined by the Designated Representative, the amount necessary to satisfy the Reserve Account Requirement shall be deposited into the Reserve Account. B. The balance of the Bond proceeds shall be deposited into the Combined Utility System Funds and applied to pay costs of the Project and the costs of issuing the Bonds. Section 25. Events of Default. The City hereby covenants and agrees with the owners of the Bonds, in order to protect and safeguard the covenants and obligations undertaken by the City securing the Bonds, that the following shall constitute"Events of Default": A. If default shall be made in the due and punctual payment of the principal of and premium, if any, on any of the Parity Bonds when the same shall become due and payable, either at maturity or by proceedings for mandatory redemption or otherwise; B. If default shall be made in the due and punctual payment of any installment of interest on any Parity Bond; C. If the City shall fail to purchase or redeem any Term Bonds, if any, in an aggregate principal amount at least equal to the Sinking Fund Requirement for the applicable Fiscal Year; D. If the City shall default in the observance and performance of any other of the covenants, conditions and agreements on the part of the City contained in this ordinance and the default or defaults shall have continued for a period 90 days after the City shall have received from the Bondowners' Trustee (hereinafter defined) or from the owners of not less than 20% in principal amount of Parity Bonds outstanding, a written notice specifying and demanding the cure of such default; -28- i153G810 3 E. If an order,judgment or decree shall be entered by any court of competent jurisdiction: (i) appointing a receiver, trustee or liquidator for the City or the whole or any substantial part of the System; (ii) approving a petition filed against the City seeking the bankruptcy, arrangement or reorganization of the City under any applicable law of the United States or the State; or (iii) assuming custody or control of the City or of the whole or any substantial part of the System under the provisions of any other law for the relief or aid of debtors and such order,judgment or decree shall not be vacated or set aside or stayed (or, in case custody or control is assumed by said order, such custody or control shall not be otherwise terminated) within 60 days from the date of the entry of such order,judgment or decree; or F. If the City shall: (i) admit in writing its inability to pay its debts generally as they become due; (ii) file a petition in bankruptcy or seeking a composition of indebtedness under any state or federal bankruptcy or insolvency law; (iii) make an assignment for the benefit of its creditors; (iv) consent to the appointment of a receiver of the whole or any substantial part of the System; or (v) consent to the assumption by any court of competent jurisdiction under the provisions of any other law for the relief or aid of debtors of custody or control of the City or of the whole or any substantial part of the System. Section 26. Bondowners' Trustee. So long as an Event of Default has not been remedied, a bondowners' trustee (the "Bondowners' Trustee") may be appointed by the registered owners of 25% in principal amount of the Parity Bonds, by an instrument or concurrent instruments in writing signed and acknowledged by such registered owners of the Parity Bonds or by their attorneys-in-fact duly authorized and delivered to such Bondowners' Trustee, notification thereof being given to the City. That appointment shall become effective immediately upon acceptance thereof by the Bondowners' Trustee. Any Bondowners' Trustee appointed under the provisions of this section shall be a bank or trust company organized under the laws of the State of Washington or the State of New York or a national banking association. The bank or trust company acting as Bondowners' Trustee may be removed at any time, and a successor Bondowners' Trustee may be appointed, by the registered owners of a majority in principal amount of the Parity Bonds, by an instrument or concurrent instruments in writing signed and acknowledged by such registered owners of the Bonds or by their attorneys-in-fact duly authorized. The Bondowners' Trustee may require security and indemnity as may be reasonable against the costs, expenses and liabilities that may be incurred in the performance of its duties. In the event that any Event of Default in the sole jud��nent of the Bondowners' Trustee is cured and the Bondowners' Trustee furnishes to the City a certificate so stating, that Event of Default shall be conclusively deemed to be cured and the City, the Bondowners' Trustee and the registered owners of the Parity Bonds shall be restored to the same rights and position which they would have held if no Event of Default had occurred. The Bondowners' Trustee appointed in the manner herein provided, and each successor thereto, is declared to be a trustee for the registered owners of all the Parity Bonds and is empowered to exercise all the rights and powers herein conferred on the Bondowners' Trustee. Section 27. Suits at Law or in Equity. Upon the happening of an Event of Default and during the continuance thereof, the Bondowners' Trustee may, and upon the written request of -29- 51536810 3 the registered owners of not less than 25% in principal amount of the Parity Bonds outstanding shall, take such steps and institute such suits, actions or other proceedings, all as it may deem appropriate for the protection and enforcement of the rights of the registered owners of the Parity Bonds, to collect any amounts due and owing to or from the City, or to obtain other appropriate relief, and may enforce the specific performance of any covenant, agreement or condition contained in this ordinance or in any of the Parity Bonds. Nothing contained in this section shall, in any event or under any circumstance, be deemed to authorize the acceleration of maturity of principal on the Parity Bonds, and the remedy of acceleration is expressly denied to the registered owners of the Parity Bonds under any circumstances including, without limitation, upon the occurrence and continuance of an Event of Default. Any action, suit or other proceedings instituted by the Bondowners' Trustee hereunder shall be brought in its name as trustee for the registered owners of the Parity Bonds and all such rights of action upon or under any of the Parity Bonds or the provisions of this ordinance may be enforced by the Bondowners' Trustee without the possession of any of those Parity Bonds and without the production of the same at any trial or proceedings relative thereto except where otherwise required by law. Any such suit, action or proceeding instituted by the Bondowners' Trustee shall be brought for the ratable benefit of all of the registered owners of those Parity Bonds, subject to the provisions of this ordinance and the ordinances authorizing the issuance of other outstanding Parity Bonds. The respective registered owners of the Parity Bonds, by taking and holding the same, shall be conclusively deemed irrevocably to appoint the Bondowners' Trustee the true and lawful trustee of the respective registered owners of those Parity Bonds, with authority to institute any such action, suit or proceeding; to receive as trustee and deposit in trust any sums becoming distributable on account of those Parity Bonds; to execute any paper or documents for the receipt of money; and to do all acts with respect thereto that the registered owner himself or herself might have done in person. Nothing herein shall be deemed to authorize or empower the Bondowners' Trustee to consent to accept or adopt, on behalf of any registered owner of the Parity Bonds, any plan of reorganization or adjustment affecting the Parity Bonds or any right of any registered owner thereof, or to authorize or empower the Bondowners' Trustee to vote the claims of the registered owners thereof in any receivership, insolvency, liquidation, bankruptcy, reorganization or other proceeding to which the City is a party. Section 28. Application of Money Collected by Bondowners' Trustee. Any money collected by the Bondowners' Trustee at any time shall be applied in the following order of priority: A. first, to the payment of the charges, expenses, advances and compensation of the Bondowners' Trustee and the charges, expenses, counsel fees, disbursements and compensation of its agents and attorneys; and B. second, to the payment to the persons entitled thereto first of required interest and then of unpaid principal amounts on any Parity Bonds which shall have become due (other than Parity Bonds previously called for redemption for the payment of which money is held pursuant to the provisions hereto), whether at maturity or by proceedings for redemption or -30- SIS?GR10.3 . otherwise, in the order of their due dates and, if the amount available shall not be sufficient to pay in full the principal amounts due on the same date, then to the payment thereof ratably, according to the principal amounts due thereon to the persons entitled thereto, without any discrimination or preference. Section 29. Duties and Obligation of Bondowners' Trustee. The Bondowners' Trustee shall not be liable except for the performance of such duties as are specifically set forth herein. During an Event of Default, the Bondowners' Trustee shall exercise such of the rights and powers vested in it hereby, and shall use the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. The Bondowners' Trustee shall have no liability for any act or omission to act hereunder except for the Bondowners' Trustee's own negligent action, its own negligent failure to act or its own willful misconduct. The duties and obligations of the Bondowners' Trustee shall be determined solely by the express provisions of this ordinance, and no implied powers, duties or obligations of the Bondowners' Trustee shall be read into this ordinance. The Bondowners' Trustee shall not be required to expend or risk its own funds or otherwise incur individual liability in the performance of any of its duties or in the exercise of any of its rights or powers as the Bondowners' Trustee, except as may result from its own negligent action, its own negligent failure to act or its own willful misconduct. The Bondowners' Trustee shall not be bound to recognize any person as a registered owner of any Parity Bond until his or her title thereto, if disputed, has been established to its reasonable satisfaction. The Bondowners' Trustee may consult with counsel and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance with the opinion of such counsel. The Bondowners' Trustee shall not be answerable for any neglect or default of any person, firm or corporation employed and selected by it with reasonable care. Section 30. Suits by Individual Bondowners Restricted. Neither the registered owner nor the beneficial owner of any one or more of Parity Bonds shall have any right to institute any action, suit or proceeding at law or in equity for the enforcement of same unless: A. An Event of Default has happened and is continuing; and B. A Bondowners' Trustee has been appointed; and C. Such owner previously shall have given to the Bondowners' Trustee written notice of the Event of Default on account of which such suit, action or proceeding is to be instituted; and D. The registered owners of 25% in principal amount of the Parity Bonds, after the occurrence of such Event of Default, have made written request of the Bondowners' Trustee and have afforded the Bondowners' Trustee a reasonable opportunity to institute such suit, action or proceeding; and -31- sis36aio3 E. There have been offered to the Bondowners' Trustee security and indemnity satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby; and F. The Bondowners' Trustee has refused or neglected to comply with such request within a reasonable time. No registered owner or beneficial owner of any Parity Bond shall have any right in any manner whatever by his or her action to affect or impair the obligation of the City to pay from the Net Revenue the principal of and interest on such Parity Bonds to the respective owners thereof when due. Section 31. Authorization to Officials and A�. � The proper City officials are hereby authorized and directed to do everything necessary and proper for the prompt issuance, execution and delivery of the Bonds in conformance with the provisions of this ordinance and for the proper use and application of the proceeds of the sale thereof as provided in this ordinance. Section 32. Supplements and Amendments. A. The Council from time to time and at any time may adopt an ordinance or ordinances supplementing or amending this ordinance, which ordinance or ordinances thereafter shall become a part of this ordinance, for any one or more or all of the following purposes: (i) To add to the covenants and a�-eements of the City in this ordinance other covenants and agreements thereafter to be observed, which shall not adversely affect the interests of the owners of any Parity Bonds in any material respect, or to surrender any right or power herein reserved to or conferred upon the City. (ii) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this ordinance in regard to such matters or questions as the Council may deem necessary or desirable and not inconsistent with this ordinance and which shall not adversely affect the interests of the owners of any Parity Bonds in any material respect. (iii) To amend or supplement any provision contained in this ordinance for the purpose of obtaining or maintaining a rating on the Bonds so long as such amendment or supplement is not inconsistent with this ordinance and will not adversely affect the interests of the owners of any Parity Bonds in any material respect. Any such supplemental ordinance of the Council may be adopted without the consent of the owners of any Parity Bonds at any time outstanding, notwithstanding any of the provisions of subsection B of this section; provided, however, that the City shall obtain an opinion of nationally recognized bond counsel to the effect that such supplemental ordinance complies with this subsection A and will not adversely affect the interests of the owners of any Parity Bonds in any material respect. B. With the consent of the owners of not less than a majority in aggregate principal amount of the Parity Bonds at the time outstanding, the Council may adopt an -32- 51536810 3 ordinance or ordinances supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this ordinance or of any supplemental ordinance; provided, however, that no such supplemental ordinance shall: (i) Extend the fixed maturity of any Parity Bond, or reduce the rate of interest thereon, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the owner of each Parity Bond so affected; or (ii) Reduce the aforesaid percentage of owners of Parity Bonds required to approve any such supplemental ordinance, without the consent of the owners of all Parity Bonds then outstanding. It shall not be necessary for the consent of bondowners under this subsection B to approve the particular form of any proposed supplemental ordinance, but it shall be sufficient if such consent shall approve the substance thereof. C. Upon the adoption of any supplemental ordinance pursuant to the provisions of this section, this ordinance shall be deemed modified and amended in accordance therewith, and the respective rights, duties and obligations of the City under this ordinance and the owners of the Bonds outstanding hereunder shall thereafter be determined, exercised and enforced thereunder, subject in all respects to such modification and amendments, and all the terms and conditions of any such supplemental ordinance shall be deemed to be part of the terms and conditions of this ordinance for any and all purposes. Section 33. Severabilitv. If any one or more of the covenants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements shall be null and void and shall be deemed separable from the remaining covenants and agreements of this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bonds. Section 34. Ratification. Any action consistent with the authority but prior to the effective date of this ordinance is hereby ratified and confirmed. Section 35. Effective Date. This ordinance shall take effect ten days after its passage, approval and publication as required by law. -33- 51536310 3 PASSED by the City Council of the City of Bremerton, Washington this 17th day of August, 2016. Eric Younger, Council President APPROVED this day of August, 2016. Patty Lent, Mayor ATTEST: Shannon L. Corin, City Clerk APPROVED AS TO FORM: Nancy M. Neraas, Bond Counsel PUBLISHED EFFECTIVE DATE ORDINANCE NO. -34- sis=Fsioa CERTIFICATION I, the undersigned, City Clerk of the City of Bremerton, Washington (the "City"), hereby certify as follows: 1. The attached copy of Ordinance No. (the "Ordinance") is a full, true and correct copy of an ordinance duly passed at a regular meeting of the City Council of the City held at the regular meeting place thereof on August 17, 2016, as that ordinance appears on the minute book of the City. 2. The Ordinance will be in full force and effect ten days after publication in the City's official newspaper, which publication date is , 2016. 3. A quorum of the members of the City Council was present throughout the meeting and a majority of the members voted in the proper manner for the passage of the Ordinance. IN WITNESS WHEREOF, I have hereunto set my hand this day of , 2016. CITY OF BREMERTON, WASHINGTON City Clerk A-1 51536310 3 AGENDA BILL �A CITY OF BREMERTON CITY COUNCIL SUBJECT: Public Hearing on Surplus and Study Session Date: August 10, 2016 Sale of 1720 Warren Avenue and 914 17`h COUNCIL MEETING Date: August 17, 2016 Street (former Cencom Building) to Olympic Department: City Attorney's Office College Presenter: Roger A. Lubovich Phone: (360) 473-2345 SUMMARY: On February 10, 2016, City Council approved the sale of property located at 1720 Warren Avenue and 914 17"' Street, commonly known as the former Cencom Building, to Olympic College. RCW 39.33.020 and BMC 2.78.060 require a public hearing when the sale of real property is an intergovernmental transfer. ATTACHMENTS: Purchase and Sale Agreement FISCAL IMPACTS (Include Budgeted Amount): STUDY SESSION AGENDA: ❑x No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business o Public Hearing RECOMMENDED MOTION: The public hearing is closed and since the sale has already been approved by City Council, no further action is required. Therefore, Administration is hereby authorized to proceed with the closing of the sale. No motion is required. COUNCIL ACTION: ❑ Approve , ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 i I I After recording return documenl lo: Sta1c of Washington I Qcpartment of Encerpric�Secvices � Real Estate Services P O i3ox 41468 I Olympia WA 98504-1468 I � � Documenl Title: Purch�e and Sale Agreement Se11er:City of Bremerton � Purcliaser: State of Washington, State Board for Community and Technical Cotleges, Olympic College, actine throu�eti Ihe Department of Enterprise Services, I Legal Description:Section 14,Township 24 North,t2ange t Eust Assessor's Tax Parcel Number. 38U4-004-006-0404&3804-004-007-0205 � PURCHASE AND SALE AGREEMENT I TH[S REAL ESTATE Pt1RCHASE AfVD SALE AGREEMENT ("Agreement") is entered into between Citv of Bremerton whose address is �45 6`� Street. Suite 600. Bremerton. Washington 98337 for it� heirs, executors, administrators. successors, and assigns, hereinaFter called the "Seller", and STATE OF WASHINGTON, tate I Board for_Commumty and Technical Colleces. Olymnic Colle�e, acting through the Department oF Enterprise Services("Purchaser"). I I. Property.to be Conveyed. Subject to d�e terms herein. Purchaser and 5cller agree to tlie � conveyance from the Seller to the Pur�chaser of the Property as described on Exhibit A,including all improvements � ther�on, and any and al! personal propeny used in Ihe operation of the land and improveme�ts, Said property is located ut 1720 Warren Avenue and 914 17"Street.City of Bremerton,County of Kitsao,S�ate of Washington. � Said parcel of land contains npproximately.b0 acres and a commercial building is further described on Ezhibits"A" � which is incotporated herein by reference. 2. Effective Date oF Aereement. This Agreemenl shall be effective and binding upon either party I only upon such date(the EFfective Date)that it has been fully executed and notarized by ali panies on the signature I pages anached and approved as to form by the Office of the Attorney General. This provision may not be waived by partial performance or otherwise and no reliance shall be placed on this Agreement until it is so executed and I approved. � 3. Purchase Price. The purchase price shall be �ne Hundred Fifteen Thousand and 13o Cents: � L$115.Q00.00). 3.1 Earnest Monev. As earnest monev.upon ezeculion of this Aareement by both�anies.Purchaser I shall deposit the princinal sum of Five Thousand Dollars ($5,000.0(}l into Escrow which shall be ap�lied to the purchase arice at closin¢. In the event Purchaser does not accept the Propertv in writing bv the end of the I Inspection/Evaluation Period per Paragrauh 6 I and/or the title within the deadlines nrovided in Para�raph 5 this � i I i � I I Acquisition No.ioaa8« (BremeAon)SJF/lom Dale:July 12,2016 Page 2 of 9 1 +�e�ment�hall terminate and Ihe earnest mon�,�shall�+e p�'omaQv refu�?cJad to�u[ch.�ser. lf Ihj,s At�reement dc�s not ciose on the date aereed u�on,includine any�xt nsions. or is_oiherwise terminated and such failure to close or t�m�inetion i c nu�due to or nllowed�y a cQntingencv ar other cond�tiun s�t fanh urtder this A�reement and is not th� fault oF the Seller,then the closine aeent shall p,�y�he earnest monev de�osi�to the 5eller. 3.2 Pa�yment of Purchase Pnce. ARer the subtraction of aU credits includinQ any earnest money paid. Purchaser shall p�,v the balance of the Purchaser Price to the Seller on the Closine Date via wire transfer of funds.or a cert ified check or cashier's check. 3.3 TI»s Agreement is subject to tlie Seller ob�aining Iinal review und npproval oF the Oftice of the At�omey General of the State oC Wasliington and shall noi be binding in any wny on the parties until Full�executed by the si}!natocs set lorth helow. 3.4 All utilities sucli as electricity, wa�er, g�s,oil and re�l property taxes shall be prorated lo the dute of closinK. 3.S Any special assessments, L.I.D. assessments and R.f.D. assessments which nre levied against the propeny at the time oF closing s1iaU be prora�ed to tlie date of closing and�ransferred inlo lhe name of the Purchaser upon closing. 4. Effective Bate. This Agreement shall be eFfective and binding on the date that it is fully eaecuted hy hoth parties and shall not be in any binding on either party until fully executed. The parties shall obtain all ' approvals of �heir governing bodies or management t��at are necessnry to en�er a binding agreement prior to executing the Agreement. 5. Escrow. TI►e partia:s shall deposit tliis Agreement, and such other documen�s and monies as are required hereby into an escrow(the"Escrow")eslablished with Land Title Company of Kitsap CoumY(tl►e"Closing Agenc"). 6. Title. 5ubject lo performance by the Purchaser, Ihe Seller agrees to execute and deliver an the date of ctosing a Statutory Warranty Deed to d�e subject Property free and clear of all encumbrances except those which are acceptable�o the Purchaser. At least Ihirty{30)days beFore closins, Purchaser shaU provide the Closing Agent and Seller a written statement oF any exceptions ta title that it requests be cleared at or prior to closing. Upan receiving such statement,Seller shall have ten(10)days to�lear any exceptions not approved by Purchaser. At the conclusion af said period, iF clearance of all objeclionable exceptions has not been ar�anged, Purchaser may then either: a. Terminate this Agreement, by written notice to Seller, thereaf�er neither party shall have any fur�her riglits or liabilities liereunder;or b. Reach agreement with Selier to have the excep�ions cleared or waive its objections to �hese exceptions, in such event, Ihe parties shall close the transaction contemplated by this Agreement, subject lo such exceptions lhat have not been elimina�ed. 7. Inspection and Evaluation oF Proneny. Within seven (7) business days of Ihe ,�� effecfive date of this Agreement,Selier shall provide or make avuilable to Purchaser for inspection ?� and copying to Ihe ealent available or within Seller's possession or control,copies of all contracts, appraisals, environmental surveys or audits oF the Propeny or the impmvements, tenant leases, Acquisilion No.10008i8 (Bremerton)S]F/lom Date:July i2,2�16 Page 3 of 9 certificales of accupancy, soils reports,spill reports, permits, natices af violation,orders or penalties,reai property n:cords, including copies of pro�u:rly tax assessrnents, E.ID pmposals, upreements, leasi�g proposals and any other documents und informatioio in tl�e possession or con�rol of Seller and pertaining to the Property and all o�her items wliicli F'urcliuser deertis reasonably necessary�o conduct its review of the Proper�y. I'urcltuser shull I�ave untit ten(10}days befare closing in whicl�to conduct i�s review of the Property.S�id review may include periodic physical and engineering inspections of�he Property. 5eller agrees ta cooperate with and assis�Purchaser in�Be pl�ysical inspections of d�e Property and such documents,books,records and information, provided tliat such inspections shall be conducted during normal business hours or al such other time as is reasonable and necessary lo conduct the inspection. Purchaser shall repair any damage to the Property caused by Purcltnser,its employees or agen�s during such inspections. Based on such review,Purchaser may request revision to the terrru of this purchase ancJlvr terminate this Agreement upon providing written notice ta the Seller at least Five(5)days before closing. if Purchaser timely reauests revisions and the parties are not able to come to agreement on such reyisi_ons �r'or tg�e C��sir�g�ate �� ehP Rimhacgr does not withdraw the reauest for revisions prior to such dateLthis aoo�PP�,P�r shall terminate on the Closing,Date and the earnest monev shall be retumed 7.1 Tliis purchase agreement is subject to lhe E'urchaser obtaining and approving the Following informntion and reports na laler lhan the close of business oa Julv 18,2016. However,this date may be extended by �n agreen�ent of Ihe parties memorialized in elecl�vnic mail or other written form. 7.I a. Final revicw of lhe Purchase and Sale Agreement and wrilten approval of the State Board for Community and Technical Col�eges,Olympic College; 7.I b. Receipt,review and approval of any leasas on the land and/or improvements; 7.1 e. Receipt,review und approvN of n preliminnry title report:and 7.1 f. �nal review and approval of the Office of'the Attorney Generai of the State oF Washingion. 8. Date of Closin¢. Closing of this vansactian shall occur in the offices of the Ciosing Agent, on or befare July_22 2016. For purposes of this Agreement the "closing" shal) have occurred when aU appropriale documents are recorded and the proceeds oF the sale are available for disbursement to SeEler. 8.I ln the event the Purehaser wishes to extend the closing dale beyond Closinr Date,the Seller agrees Ihat tiie Purchaser may extend Ihe closing date on a month-to-month basis bv providioe written notice. Provided, such extension rnav not exceed September 30.2016.with written a�reement of boih parties. 9. Closing Costs. Seller shall pay the following costs and expenses in connection with this transxtion: a) Sellers attorneys'Fees. Pu'rchaset shall pay the following costs and expen�es in connectinn with this transact'son: a) Purchaser's attorneys'fees; ��'��C b) The Escrow fees; � c) Titla iosurance premium or abstract fee and sales lax thereon,iFany; d) Fees for recarding of the Statuwry Warranty Deed; Acquisition No.10U08lS (Drcmcnon)5)F/lom Dale:July 12,20t6 Page 4 of 9 e) Real proper�y taxes sliall be proratcd witli Purcltaser paying the portion accruing for d�e period aRer the dnte of closing.if applicable. Tlie stute of Washington is n;al estate�ax exempt. ]0. Governrtiental Approval. If ttie approvaf of any goven�mental�gency is required for Uie sale of t}ie Property, il is underslood and agreed that Iliis Agreement is subject to oblaining sucli approvnl. Purcliaser shall,at Purchaser's expense, use its best efforls und Iuke all steps necessary to obtain such governmental approval. The closing date shall be extended, subjea to the limi�s in paragraph 7.1 of�his Agreement. for such period as may be required�o obtain such approval. I 1. Survey; Subdivision. in the event a city,county, or other governing authority having jurisdiction over tlie Property requires a survey or plat or has a subdivision ordinance. Purchaser shall, at Purchaser's expense, compiy with such ordinance and take all steps necessary to obtain such survey,plat or subdivision. Seller agrees to cooperate with Purchaser in obtaining tlie necessary ppprovals. The closing date sl�all be ea�ended, subject to tl�e limi�s set fortli in puragraph 7.I of this Agreement,for such period as may be required lo obtain such approvnl. 12. Possession. Purchaser sliall be entitled to possession of the Propeny upon the date of closing, subject anly to sucl�matters approved in writing by Purchaser. 13. Commission. Seller warrants and represents �o Purchaser that Seller is responsible for all real esEa�e broke�ge commissiops or fees of any kind or type that are due and payable on this transaction. 14. Governing Law: Venue. This Agreement and Il�e rtghts of�lie parties hereto shal)be governed by and construed in accordance wi�h�he laws of the Slate ai Wa�Shinglon and Ihe parties agree�I�t in ttny such action venue shall lie exclusively in Thurslon Counly,Wnshington. I5. 'E'in�e is of t6e Essence. Time is of the essence in�he performance of any obligations pursuant �o this Agreement. Failure of either party to insisl upon the strict performar�ce of the�ther party's obligation hereunder shall not constitute a waiver of strict performance d�ereafter of all of tfie other party's obligation hereunde�. 16. Amendmenl,Waiver. I�o modification,tertnination or amendment of this Agreement rnay be made except by written agreement or as alherwise may be provided in this Agreement. No failure by Purchaser to insist upon lhe strict performance oP the seller's obligations hereunder shall conslitute a waiver of stricl pert'ormance thereafler oF all of the Seller's obligations hereunder, All the terms, provisions, and conditions of this Agreement shall inure to the 6enefit of ancl be enForceable by Seller and Purchaser und iheir respective legal heirs, legal representatives,successors and assigns. 17. Notices. Any notices required or permiued to be given shall be in writing and delivered either in person or by certified mail, return receipt reques�ed, postage prepaid, addressed as follows or to such other uddress as may be designated by either party: SELLER: Citv of Bremerton 345 6`�Stt+eet.Suite 600 Bremenon.WA 98337 f�� z� f ,j Acyuisition No.1000818 (Bremenon)5]F/lom Date:July 12,2016 Page S of 9 PURCHASER: S�ate of Wayl�ineton. S�ote 9oard For Communitv and Technical Colleges. Olvmoic lle e Aciing throuah the De�artment of Enterprise$ervices Real Estate Services ISOO lefferson Street S.E..2"�Floor Post Office Box 41468 � O�m ia,Was ington 98504-1468 • Any notice given pursuant to tliis Agreement shall be deemed effective the day i�is personally delivered or Ihn,�e(3)business days nftcr the daie it is deposited in the United States mails. 18. Entire Ag�ement All unders�andings and agreements previously existing between the parties, if any, are merged imo this Agreement, which ulone Fully and completeiy expresses lheir agreement, and the same is enlered into af'ter full investigation,neither party rclying upon�ny statement or representation made by the olher not emboclied herein. This Agreement may nai be cl�anged or terminaled orally. 19. L.ease.s. AU leases on land and/or impmvements on the property shall be s►ssigned to tl�e Purchaser at lhe lime of closing. All rents, including prepaid rents, if any, shall be prorated to the date of closing and any damage or securiry depasits afFecting terminated tenancies shall be refunded at closing to the tenant entitled thereto or paid lo the ac:cuunt of the Purchaser in accorda�ice wilh the tenns of d�e lease or renlal agreement. Tenancies to be continued shall be assigned ta Purchaser. 20. Hold Narmless. As partial consideration for the nurchase of the Procertv Buver purchases the pr+nperty,and imarovements"as is"and agrees to hold the Seller harmless from anv environmental condition or defect whe�her known or unknown.This provision shall survive closin� a 21 .Non•ForeigQ Affidavit. Seiler is not a Foreign person as the term is used and defined in Section 1445 of the Internai Revenue Code, as amended, and the regulations promulgated thereunder. 5eller shall, upon request af Purchaser,complete an affidavit to the effect. 22. Sellars Environmental Renresentations. Seller represenls that to the best of its knowledge that it is not aware of existence oF,or has caused or allowed to be caused,any environment condition(including,without limi�atian,a spill.discharge or contamination)that exisied as of and/or prior to the cfosing date or any act of omission a:curring prior to the closing datc,the result oF which may require remedial action pursuant to any federal, stale or local law or may he�he basis for the assertion oF any third party c[aims,including claims�f governmenlnl entities erc,ep�there exists a fuel�ank on the oropertv as follows: The tank i5 ar�urtderg�vund diesel stora¢e tank be[ieved to be annroximatelv 2 000 all� on capacitv located at t720 war�rn e�Pn��P r�at has been emp�ied cleaned checked for tightness and is curnentiv not in use It is left for future �� if needed bv the new awners or tenants of the gro e�ny. The state Department of Ecolo�y Fuel Tank r��*+��a��e Ta�g1V�n+��s#A8512 and it auoears to have been iceood maintained order from when it was used bv the te. �� 23. Assignment. Seller agrees that this instn�ment and all rights,litle and intemst af1 ?� the Pu�haser are tully assignable by the Purchaser to ather gpvernmental emities. • Acquisition No.10008J8 (Brcmenon)SJFltom Dale;July 12,2016 Page 6 of 9 24. Default: Remedies: S�ecific, Performance. In thc event of material bn:ach or default in or of this Agreement or any of the representations, warranties, �erms, covenants, condit�ons or provisions henof by Seller, Purcliaser sliall t�ave, in addition to a claim for damages from sucl� breacl�or default and witliout prejudice to any otl�er rigl�t or remedy available under tl�is Agreement or at law or in equity,U�e rigln�o(a)demm�d a�►d I�ave specific perFormance of Iliis Agreement; (b) demand injunctive relieC to enforce any provision oF�his Agreement; or (c) terminate this Agreement upon written notice without any additional liability to Seller and Purcl�aser shall be entitled to a full refund of any payments outlined herein. In lhe event of a muterial breach or defaull in or of this Agreemenl or any of the representations. wamanlies, terms, covenants, conditions or provisions hereoF by Purchaser, Seller°s only cemedy shall be a clnim for damages. 25. Condition of Tilie. Seller hereby agrees From aod after the date hereoF until�I�e termination of�I�is Agmement or the closing of the sale of the Property,that(i}it will take no action lhal will adversely affect title to or development of tlie Property; (ii)it will not mortgage.encumber or permit the encumbrance of all or any poriion of the Property wilhout Purchaser's prior written consent;and(iii)it will not enter into any writlen or oral conttacts or agreements wiU�respect to the Property. 26. Merper of Prior Agreements. This Agreement and tlie exhibits hereto constitu�e the entire � agreement between the parties with respect to the purchase and sale of tfie Propeny and supersedes all pnar and contemporaneous agreements and understandings between tl�e parties liereto relnting to the subject matter hereoF. 27. Neutral Author�hia. Each of�he provisions of this Agreement has been reviewed and negatiated, and represents Ihe combined work product of both parties here�o. No presumption or o�her rules of construction which would interpret the provisions oC this Agreement in Favor of or against thc parties preparing the same shall be applicable in cannection wid�the construction or interpretation of any of the provisions of tl�is Agreement. 28. Damave to Real Property. If prior to the Closing Date, ali or any portion of the property to be conveyed is damaged,destroyed or rendered inoperative(collectively "Damage" but not including demolition that parties agree upon) by fire, natural elements,or other causes for which the Purchaser is not responsible, lhen Ilie Purchaser may by giving wriuen notice terminate this Agreement and cancel the purchase of�he Property, and in which case, neitl�er Purchaser or Seller shall have any further rights against or obligations to the other under this Ap.reement, which sQecitically survive termination of this Agreement. If Purchaser elects to proceed to close and purchase the Real Property then Seller shall assign at or before closing to Purchaser all of proceeds that have or will be paid,if any,as a result of such Damage. This provision shall survive closing. 29. No Waiver of Eminent Domain Power. IVothing in�his Agreement shall constitute,or be construed as constituting,any limitation upon Purchaser or any waiver by Purchaser with respect to its exercise of the power of eminent domain in c�nneclion with any propeRy. 30. SeverabilitX. In case uny one or more of the provisions comained in the Aereement sha11 for any reason be held to be invalid, illegal or unenforceable in any respe�t, such invalidity, illegafity or unenforceability shall nol affect any other provision hereof, and this Agr�ement shall be constrodd as if such invalid, illegal or unenforceable provision had never been contained herein. 31, Remedies Cumulative. Except as otherwise expressly provided herein,the rights and remedies given herein to Purchaser and Seller shall be deemed cumulative,ar�d the exerci5e oF =�[ one or more of such remedies shall not oQerate to 6ar the exercise oF any other rights reserved to � \/ Purchaser or Seller under the provisions of this Agreement. � Aequi�ition 1Va.100081 B (H�emenon)SJFllam Du�c July 1Z.Z016 Prge7of9 ,'� Unless olherwi�e nalifkxl hy Pu�ciwier in writing�nior lo the date of clasing,Shcer stmU canvey Itr Property la Pnn�hoseras follows Smtc of Wasl�aglon.�Irate �(3oamaan�x ied 7'edmiml t7e1le��O�r�e��nik� 1N WITNFSS WNEREQF�Il�e pnrtfea ftealo livve haeumo a�hacd6ed tl�ea names. CITY OF BREMER't'ON STAT�QF WASHING!'�H 5�ate�a�d tor Comawairy an�Teduilcal Calkge,�. Ohlmpfc Co�ie�e Actfng ng�t�he Dep�ement ef �'� Strv� By: Pauy lrnt,M m�t Direaor DE�IiRYlIt of 611 ��i 5d'YiCE6 a�e; o /S � o�� b � s��A��,ney��y a,+x�o� xe�t�ta9e senRaa n�t• �—r9_/6 APPROVED A5't'O PdRM: APPROVE�D A5'i'O EORl19: ey: ,�.e,..- �`'.�.. Ro�er a.l.cba.+ich,ary aacme a�aem�ey caaal Dple: lu�y 14.�16 /��1T . (t �r 1k�_; l�f: .._s AcquuttMn No,l000816 d8�emcAoA)5JFliam Dote:July 12,2016 Pagc 8 of 9 STATE OA WASHINC'fON ) )ss. Coun�y of Kilspp ) On Ihie d�y a��, ZDIb, hel'ae me a Namry PubGc in and for the SWa af Waehinglon,PA'ITY pe� ly oppea�ed m�krowe�o bo�lie Meyor o[�he Ciiy vf Braaertoa,a manicipal �pm�ian 16a1 exaeuted ihe fo�tgain�inwumea4 and nclunwledged it to be!he fRe end volnntary W 4nd deed af�he �rnmicipa! corp�a�icn. Car 1he u� and ptupnara n�nfioned in tlde inqcumem. �td on aath �talad Umi she w�s euthori�d ro e��e�id lt�awmen6 ln Wi�eae Whe�eo hneu�o sat my�d end aflixed my oti[cial seal ihe day m�d year fi�obove t�i�len. .�N M��j,0 • O.��'SAR f• .Z in thee Scme of Washia�on, �' � �t : Raiding :� P()B�-�� My owtanitsion expi �.�g�r��. pF S"TATE OF WASHlNGT�QN ) )�s. CamtyofThueslai � �j t.the unde�aig�ed,s Nomry PuMic.do 1�by odli[y rbu on tltis,��day o[ � �v-P��9 aPP��hefare ene 5BI'H WALLACE.A�iatant Direaor�Ral F.�qte Servioes. of Etuaprise servna,state or washingpon�ro me knoam m 6e�ke c�arvidnel das��n ena who eRewuea Uie willnn it�strumatf.uod adceowkdged!he!(�Jbe ugned and eeeled the catRe es Ihe ftee snd volwrtary acx ond dcad af 1he De�ttmee4 far ttx parposes aad��tre�em mauiarsd,and an va�h spued thae(s)he wu duly eu�neimd w eu�e said dacument. . In Wila�Wl�eteof!hsve Itaewuo set my beud and affuad my of�ciel sml Ihe d¢y end�rar fir�t a6ova wrillea ````��\\\\ 111111�+ `�� 1�� , �� . ��Q�.. piq�� ti ��/ ,..��..... %� s,�. ES �4�� 'JOmry Pll � � �Of alt$t8lC W o11. �p? Q�Y �4 t7 j �dllt8 iL �Y� �Q=w ,.� 1 u ra: ? � My co�nmiasion e�girea — . ;m o • �� . � ; _ � % a:� � , ma:= v� : % '''�'�O PJ ;1r- Q - ,/�/ ��hu��"��``�(�� 1l��4S\A\�0�� atT1q`, �� P � Acquis�tion No,1fl00818 (B�emcrton)SJF/lom Dn�e:July l2,201b P�ge 9 of 9 STATE pF WASH[NGTON ) �ss. County of Thurslon ) I,the undersigned,a Notary Pu ic.do hereby certify tliat on this 1�� day of � �----- ,20�.�0, personally appeared hefo� r►� BOB COVINGTON, Deputy Direc , Depanment of Enterprise Services, State of Washington. to me known to be ttie individual dascribed in and who executed the williin inswment, and acknowlcxiged that (s)lie signed and sealed the same as the Cree and valuntary acc a�nt deeJ oE the Department, for the purposes and uses therein mentioned, und on oath s�uted �l�nt (s)f�e was duly authorized�o ex�cwe said docun�ent. In Witness Whereof I have hereunto set my liand nnd affixed my official seul Ihe duy nnd ycar fiist above writte�i. ```��\�\�111tt� \V�� ,.� P�VIIOOp ►�� I . t �Q�`;,...,,,,,,,,,, �-1�.� _ _,\gg10N E �i�� /�, � tAlp�, �% � Notary Public i and for the State Washington, � ;o r_ �„ y= � Residing at %V � r i % '0ue�`�' �� = My commission expims ' N i,� ��0 i /. ,�i�9��'��;�Z,A..��`�� II,J��O 1�W P5��\``` 2��1AC • � i I EXHIBIT"A" � DESCRIPTION: I I PARCEL I: ' RESULTAN7 PARCEL 1 OF 80UNDARY LINE ADJUSTMENT RECORDED UNDER AUDITOR'S FILE NO.20081Q070111,DESCRIBED AS FOLLOWS: I A PORTION OF L�T(S)6 AND 7,TRACT 4,WARREN SMITH'S ACRE TRACTS,ACCORDIN(3 TO � THE PLAT fiECOFiDED IN VOLUME 2 OF PLATS,PAGE(S)51, RECORDS OF KITSAP COUNTY, WASHINGTON,SITUATE IN GOVERNMENT LOT 3,SECTION 14,TOWNSHIP 24 NORTH,RANGE � 1 EAST,W.M., IN KITSAP COUNTY,WASHINGTON,BEING MORE PARTICULARLY DESCRI�ED AS FOLLOWS: � BEGINNING A7 7HE MONUMENT IN CASE AT THE INTERSECTION OF THE CENTERLINE OF 17TH STREET AND 7HE EASTERLY MARGIN OF ELIZABETH AVENt1E, BEING SOU7H 88°24'23" EAST 1006.49 FEET OF AN EXISTING MONUMENT IN CASE AT 7HE CENTERLINE 1NTERSECTION OF CNESTER AVENUE AND 17TH STREET;THENCE NORTH 88°24'23"WEST 174.15 FEET ALONG THE CENTERLINE OF 17TH STREET TO ITS(NTEASECTION WITM THE EXTENSION OF THE EAST LINE OF THE WEST HALF OF SAID l.OTS 6 AND 7;THENCE ALONG � SAID EXTENSION AND EAST LINE NORTH 1°03'05°EAST 11 i.18 FEET TO THE TRUE PQINT OF BEGINNING;THENCE SOUTH 88°24'23"EAST 5.04 FEET;THENCE NORTH 1°03'05" EAST 31.01 FEET;THENCE NORTH 88°24'23"WEST 5.03 FEET TO THE SAID EAST IJNE OF THE WEST HALF OF SAID LOTS 6 AND 7;THENCE ALONG SAID EAST LINE, NORTH 1°03'05" EAST 88.99 I FEET 70 A POINT 38 FEET 50UTH OF THE NORTH LINE OF SAID LOT 6;THENCE NORTH 88°24'23"WEST 124.03 FEET;THEWCE SOUTH 1°04'49"WEST 176,62 FEET;THENCE ALONG A LEFT HAND CURVE,THE CENTER OF WMICH BFJ�RS SOUTH 88°55'11'EAST 25.00 FEET, THROUGH A CENTRAL ANGLE OF 90°30'48"AN ARC QISTANCE OF 39.49 FEET;TFlENCE i SOUTH 88°24'23" EAST 42.40 FEEf;THENC�NORTH 1°01'20"EAST 81.08 FEET;THENCE SOUTH 88°24'23" EAST 57.43 FEET 70 THE TRUE POINT OF BEGINNING. � PARCEL II: � THAT POATION OF LOT 7,TRACT,4,WARREN SMITH'S ACRE TRACTS,ACCORDING TO TNE � PLAT RECORDED IN VOLUME 2 OF PLATS, PAGE 51, RECORDS OF KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: I BEGINNING AT THE NORTHWEST CORNER OF ELlZABETH AVENUE AND i TTH STREET,ALSO BEING THE SOUTHEAST CORNER OF THE EAST 20 FEET OF SAID LOT 7;THENCE WEST � ALONG THE SOUTH LINE THEREOF 129.95 FEET TO THE TRUE POIfVT OF BEGINNING; THENCE NORTH PARALLEL TO THE EAST LINE OF SAID LOT 7 A DISTANCE OF 63.54 FEET; I THENCE EAST PARALLEL TO THE SOUTN LINE OF SAID LOT 0.9 FEET;7HENCE NORTH � PARALLEL TO THE EAST LINE OF SAID LOT 7,32.54 FEET;THENCE WEST PARAI.LEL TO THE SOUTH LINE OF SAID LOT 62.47 FEET;THENCE SOUTH PARALLEL TO THE EAST LINE OF � SAID LOT 96 FEET,MORE OR LESS,TO 7HE SOUTH LINE OF LOT 7;THENCE EAST ALONG � SAID SOUTH LINE 61.5 FEET,MORE OR LESS,TO THE TRUE POINT OF BEGINNING. i � � i � i From: Lori Smith On Behalf Of City Council Sent:Wednesday,August 17, 2016 3:33 PM To:City Council<City.Council@ci.bremerton.wa.us> Subject: FW: Item 7A Consent Agenda -Sale of the Old CenCom Building Mr. Fessner, This is to acknowledge that your e-mail with attached letter was received, and will be provided to the Council Members for their review. A copy will also be included as a part of the record. Thank you for taking the time to submit your comments. From: Marine Outfitting [mailto:maroutfittin�@cbnn.net] Sent:Wednesday,August 17, 2016 2:39 PM To: City Council<Citv.Council@ci.bremerton.wa.us> Cc:Terry<terrvC�dakotacreek.com>;Terry Fessner<maroutfittin�@silverlink.net> Subject:Consent Agenda -Sale of the Old CenCom Building Good Afternoon City Council For your consideration, please read my thoughts on the sale of the old CenCom Building. Thanks for your time Sincerely Terry Fessner 360-471-8847 (cell) This year the City Council has not done very well in real estate transactions. You essentially rewarded Olympic College and the Bremerton Trust for creating and maintaining the downtown corridor tragedy for the last 30 years by selling them the old CenCom property for $100,000 to $130,000 after spending $70,000 on a new roof. This property use to have a house sitting on it valued as follows in 2014 (Kitsap County Tax Records are blank for 2015 & 2016 — not sure why) ✓ Value of Property (the improved dirt) $26,560 ✓ Value of House $37,120 ✓ Value of Property and House $63,680 Someone had to tear this house down (Bremerton or Kitsap County since it was a shared facility). Not sure who bore this cost but it did cost money and the subsequent fill / gravel that was brought in to repair the property. I seem to remember hearing that it was thought by tearing the house down, the main CenCom building would sell quicker which of course did not happen and someone, I believe the City of Bremerton — but am not entirely sure, bore the cost for permits, asbestos abatement, demolition, and subsequent grooming of the property (fill / gravel / etc.). Now we have the CenCom building itself. It was the old toll both for the Warren Avenue Bridge. After a levy was passed by the citizens of Kitsap County, a new CenCom building was constructed and this one was abandoned. It has largely set empty for many years with some not for profits weaseling their way in but eventually asked to leave. In the meantime the Public Works Department invoked right of ways in front of the building (befinreen Warren Avenue and the building itselfl to ensure access to the pocket park which sits north of the building. This right of ways essentially doomed the building and any future it had in my opinion. This property is valued as follows in 2014 (Kitsap County Tax Records are blank for 2015 & 2016 — not sure why) ✓ Value of Property (the improved dirt) $39,590 ✓ Value of House $274,780 ✓ Value of Property and House $314.370 So the sum of both properties is $378,050 (as valued in 2014 with the records being blank for 2015 and 2016). In 2016, the City of Bremerton replaced the roof for approximately $70,000 (this is the number that I seem to remember). So now the property is worth $448,050 in 2016 based on 2014 tax records and the new roof in 2016. AND YOU ARE SELLING IT FOR $100,000 TO $130,000!!!! You, the City Council have fiduciary responsibilities to the citizens of Bremerton and you are the "check and balance" to ensure the Mayor and her staff don't make crazy financial transactions on behalf of the city. This includes "giving away" valuable property for way way way way below market value. Sorry, you failed miserably in this situation, in my humble opinion. If you essentially wanted to get rid of this property and give it away, you did not have to authorize the expenditure of over $70,000 for a new roof. Whoever is managing the property sales and leases for the City of Bremerton, please reassign � this function to another person before this person sells the City of Bremerton for a penny. Way to go Bremerton, reward the organizations that were fundamental in the destruction of Bremerton and the way it is now. In my humble opinion, you are not having a banner year on real estate transactions and I truly question your decision on this matter but more importantly your lack of (by authorizing this transaction) fiduciary responsibilities to the citizens of Bremerton. �I AGENDA BILL 8A CITY OF BREMERTON CITY COUNCIL SUBJECT: Resolution No. 3276 to Study Session Date: August 10, 2016 Change the Name of North Summit Avenue COUNCIL MEETING Date: August 17, 2016 to "Carol Arends Parkway" Department: Parks & Recreation Presenter: Jeff Elevado Phone: (360) 473-5428 SUMMARY: The City received a request to honor former council member Carol Arends at Forest Ridge Park. Staff presented the request to the Parks and Recreation Commission at their June 28, 2016 meeting as outlined in Bremerton Municipal Code 2.82. A motion was passed to retain Forest Ridge Park and to consider naming an element of the park or street within the park to recognize Mrs. Arends. Parks and Recreation staff then coordinated with Engineering, Kitsap County GIS and Kitsap County CenCom to determine if North Summit Avenue could be renamed to "Carol Arends Parkway" as outlined in BMC 11.18. Approval was granted. North Summit Avenue is within the boundary of Forest Ridge Park and no residents or property owners will be directly affected by the proposed name change. ATTACHMENTS: 1) Resolution No. 3276; 2) Exhibit A (Site Map); 3) Exhibit B (Park Sign Mockup) FISCAL IMPACTS (Include Budgeted Amount): The cost to implement the name change is approximately $2,500 which includes two new street signs and a new park entrance sign to be paid by a donation from the Arends family. STUDY SESSION AGENDA: ❑ No Presentation 0 Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda o General Business ❑ Public Hearing RECOMMENDED MOTION: Move to adopt Resolution No. 3276 changing the name of North Summit Avenue to "Carol Arends Parkway". COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 RESOLUTION NO. 3276 A RESOLUTION of the City Council of the City of Bremerton, Washington, changing the name of North Summit Avenue to Carol Arends Parkway. WHEREAS, a request was received by City staff to honor former City Council member Carol Arends at Forest Ridge Park, and WHEREAS, the Bremerton Parks and Recreation Commission recommended naming an element of the park to recognize Carol Arends for her outstanding civic service to the community, and WHEREAS, Parks and Recreation staff coordinated with the City of Bremerton Engineering staff, CENCOM and Kitsap County GIS on the street naming and all approved the street name "Cazol Arends Parkway,"to replace North Summit Avenue, and WHEREAS, North Summit Avenue is entirely within the Forest Ridge Park boundary and no residents or property owners will be directly affected by the proposed name change, NOW THERFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Name ChanQe. The name of the city street North Summit Avenue is hereby changed to Carol Arends Parkway. SECTION 2. Severabilitv. If any one or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect. SECTION 3. �fective Date. This Resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council of the City of Bremerton, Washington this day of , 2016 ERIC YOLJNGER, Council President APPROVED AS TO FORM: ATTEST: ROGER A. LUBOVICH, City Attorney SHANNON CORIN, City Clerk FOREST RIDGE PARK EXHIBIT A _. _ .. . ... _ _ .. . . . . , , 9L . I I�.. �'C, ' � ' I ' P . I — ' �� Ef�A. _,.�� f '� _ _ . ��N - . _ �� ,�Yd . � � - , -----. _—� �- , , � � . , __,.____. ---� �---- _ _ ----_ -- � � ---_. , _� ., ... ._"—"-"'"'-'. .._"_'_'_____'_J L__'_______!Q' _'__ I i � Eth 5t---------- � --- �...__ -..�------ �----- � I �--- ---- _ , 018•O1 1- __..-----� -------�; : ! � �—�-----._.� . �.._-----��-----� J L ; � s.-___ �---- _ , _ . �2 � � �_b'--._—.."_ _'� � `'--�_� r'__"�._ _ - . I ; i'c Ol•O1 � ' � I i .; �. .. 13 � ; `� ooi-oo ooi-oo � ! ; � � ; ` ! i ' � ' � ' � � ? ' 4•022 ; 003•00 � ; i i - i ; � 14 I� � I ; � , ' • ;'j i , , I � I i , i � � ; � 15 j 005•00 005•00 j � i � i ;i ' I 008•00 ! i � � ' � '. j ; :, ; ;032•00 i;. 06 � i q-015 009•00 p�p.�l 009-00 ' I a i� a ' � 011•00 � � � . lo ' � � I ��' � � ��o I 012•00 p��._�n..11 � .� _....��.�.�.r_�_._..�_,v • � 013• 3 7ax Accounts found. �, 2 i � I . i . iOpen Table ' � � ;�; - l� ; u 152401-4-021-2007 �I� , • � I > ;a Accaunt5tatus:- Active I ( "'� a ' . ; . '� �TaKpayer: BREMERTON CHTtl OF WREST � °�---�---------------- ; � LO I> ; � I:� �� RtOGE PARK � q•--...-----------�-----------.� 7 F-' .lo. {1•021 f— — — � �— — �� Site Address: �3100 iST ST BREh1ERTON WA (' �� 98312 i ��0 � �` Mail Addres.s: 3?5 6TH ST S7E 500 BREh1ER7�N '$S �z• FOREST RIDGE PARK 1 I I WA 98337 1873 � i � � iszaai-n-ozi-zoo� . I. � ; : � + , � i Account Status: Active � . I ; � � Taxpayer: 8REh1ERTON C[TY OF FOREST � �•OZO Qj f � � RSDGE PARK :� - � � . 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I; --_'__.___-iy_—____'_'___'__.__'_I r_._'_'__—_.--___ ..-.--. �� 1 005 � 1-053046 00 �... i��_,c ��v��.Ic.r--i� �'�e . -- :...... � ; . iT. . . ..... . _. . - � - - - n .. _ . .. _.. CITY OF BREMERTON �CAROL AREN DS PARKWAY � AGENDA BILL 8 B CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. 5306 amending Study Session Date: August 10, 2016 Chapter 15.03.040 of the Bremerton COUNCIL MEETING Date: August 17, 2016 Municipal Code entitled "Service Beyond Department: Legal City Limits." Presenter: Roger Lubovich Phone: (360) 473-2335 SUMMARY: Amending provisions of Chapter 5.03.040 of the Bremerton Municipal Code entitled "Service Beyond City Limits" relating to the provision of wastewater utility services outside city limits. ATTACHMENTS: 1) Ordinance No. 5306 (Updated 8/12/16) FISCAL IMPACTS (Include Budgeted Amount): None STUDY SESSION AGENDA: ❑ No Presentation � Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda o General Business ❑ Public Hearing RECOMMENDED MOTION: Move to adopt Ordinance No. 5306 amending Chapter 15.03.040 of the Bremerton Municipal Code entitled "Service Beyond City Limits." COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 ORDINANCE NO. 5306 AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 15.03.040 of the Bremerton Municipal Code entitled "Service Beyond City Limits." WHEREAS, the City Council desires to amend Section 15.03.040 of the Bremerton Municipal Code,relating to the extension of wastewater utilities outside the City limits of the City of Bremerton; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 15.03.040 of the Bremerton Municipal Code entitled "Service Beyond City Limits" is hereby amended to read as follows: 15.03.040 SERVICE BEYOND CITY LIMITS D.� o.•�..+L..�4 . �.4�.:.70 �,+:.... lti:�..1: :4�, �,L..�11 b.o :++o.�i • oto .�to oo�ine ....1. .,+o.-;,,., ;..+„ ., „+�:,70„+;1:+., � „r . ,;+1, �1,0!-`;+�,., ��«,. F.. !.,\ !�'_«.,.�+:.,,,+„ *l,o!`:+.,„F i2,-o.,,o,-f.,., ., 1:..,;+0,7 ,� �,��+...-.,o.,t., ;,,..1,,.�0 Io.-�� o.,++,, o .,*:,, „�'+l,o o,-t. �,-► .,F� .,r;�o�,�;r.��+ „ o+:*:,. F .,+:,,., ., „+0,7 +�, +L.e!`;+.,.,FL2,-o,ti,o,-t.,,,• 0 0 0 � ll.l !`„ ��o .:+L, 0,7 „+,-�+e.�.-:+., �1 01,0 0 1",�..�oo e CGT r„ �*o ,;rt, �a,.��oa r;*..�r,t�., o �a ..,,t: o� � o , lrll !'�., �.+o .:�1, ♦l,o o.l.,w,+o.a !'`;t. i,.�o+o�:in*vr., ol,o.,�.: ,•.1., .��1 �,,,.:,,00..:.,,. r�o�:,.,, ,,.,a r,,.,�+r,,,+;,,,, c+.,,,a.,,-a� (a) General Policy. It is the eg neral policv of the Citv of Bremerton that properties located outside the City limits annex into the City before wastewater utility services are provided to those properties. For the purpose of this section, "service"means extensions of and/or service connections to Citv wastewater utilities to property located outside City limits. "Extension" means to modify, expand, or extend the existin�Citv wastewater infrastructure such as sewer mains and related appurtenances. This policv does not apply to water utilities. Exceptions to this policv are set forth in Subsection (b) below. (b) Exceptions. In cases where an owner of propertv located outside the Citv limits requests extension of utilitv service, the City Council may, in its sole and absolute discretion, provide wastewater utilitv services to those properties if the property owner executes an outside utilitv agreement pursuant to the provisions set forth in Subsection (d) below and: �) Annexation not Feasible. In cases where the City Council determines that annexation of a property located within the City's urban growth area is not currentiv feasible; or (2) Failed Svstems. In cases where an existin�ptic system servin�property has failed, and 1 Wastewater Utility Services Outside Ciry Limits �) the local health official certifies that an existin�ptic svstem has failed and is phvsicallv inc�able of bein�paired or replaced in a manner meetin�applicable health standards; and (ii) connection is shown to be necessary to protect basic public health and safetv and the environment; and (iii) for property located outside an urban �rowth area, the utility services provided by the connection are financially sustainable at rural densities and do not permit urban development pursuant to RCW 36.70A.110(4), or (3) Other Circumstances. In any other circumstances where the City Council determines at its sole and absolute discretion, that it is necessarv or appropriate to allow the provision of wastewater utility service. �c) Existing Utilities. Nothing in this section is intended to abro at� e any existin� wastewater utilitv svstems currentiv in existence outside the City limits. The City does not intend to terminate a�wastewater utility service outside the Citv limits that is in existence as of the effective date of the ordinance codifvin�this section. For purposes of this chapter, "in existence" means the property is currently receiving utility service and/or has a fullv si�ned, valid City utilitv service a�reement. However, the City will not provide new wastewater utilitv services to pro�ertv from existin�wastewater utilities located outside the City limits except: �1) as provided in Section (b) above; or (2) a new service connection to a sin�parcel of propertv from a frontin s� main pursuant to BMC 15.03.080 that does not modifv, expand, or extend the Citv's wastewater utilitv infrastructure such as sewer mains and related appurtenances; or (3) new utility services from an existin�v wastewater utility system as established by a local improvement district (LID) to propertv that is subject to the LID; To receive any of these new services, the property owner must execute an a�reement pursuant to the provisions set forth in Subsection (d)below. The Director of Public Works and Utilities is authorized to approve utilitv service pursuant to Subsections (c)(2) and (3). (d) Outside Utilitv A�reement. In the event that the City Council determines, pursuant to Section (b) above to�rovide wastewater utilitv services beyond the City limits the owner of the propertv for which service is authorized must execute an outside utilitv aQreement with the Cit�providing for the owner rg anting to the City of Bremerton a limited power of attorney to include owner's consent to annexation of the property as part of any notice of intent or petition for annexation presented to the Citv of Bremerton; (e) The Director of Public Works and Utilities, shall review the application for services and forward the same together with the director's recommendation, to the City Council for review and determination under Section (b above. SECTION 2. Sel�erabilitv. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 3. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. 2 Wastewater Utility Services Outside Ciry Limits PASSED by the City Council the day of , 2016 ERIC YOUNGER, Council President Approved this day of , 2016 PATTY LENT, Mayor ATTEST: APPROVED AS TO FORM: SHANNON CORIN, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the day of , 2016 EFFECTIVE the day of , 2016 ORDINANCE NO. R:\Lcgal\Legal\Files\Cuircnt Active Files\Annexation-Generally\Utility Ex[cnsions Outside City\BMC 15.03.040 Utility Extensions(8-12- I b).docx 3 Wastewater Uti[ity Services Outside City Lintits